Upgrade to new property ?
There is a property in my Village I am interested in that has a 3000 square ft Victorian and 2 small out buildings. Bouts of the out buildings have electricity and one has a radiant heat floor.
While I haven’t toured the property yet, the home appears to need cosmetic repairs that I can do, and with work I believe the two buildings could become 1BR ADUs.
The tent from these units would cover the taxes for the property, the heat for the house, and likely the cable/internet for the house. It would only be about $1200/month.
I believe ARV there would be about $120,000 in equity. My renovation estimates may be high and the ARV equity might be closer to $150-160,000. My cost of living would go up about $500/month from where I live now but I'd be able to rent out my current space for an increased cash flow of $700/month for a net gain of $200/month.
Would you try to buy this new deal knowing in 2 years you could take your profit tax free as your primary residence or else keep living there and build up appreciation and increased rents and bigger cash flow if my partner and I love it once it’s renovated.
So should I buy it, or wait for a better opportunity to come along?