[quote=bobby][quote=flu]The only question you need to ask yourself is
do the numbers work out with a decent positive cash flow for any random tenant.
Also imho, if I were you, I’d do myself a favor and rent to a complete stranger, not someone I have any sort of relationship with (professional or otherwise).
Either you’re not going to be happy because you won’t be able to get the best price you can get, or the other person isn’t going to be happy, because they think you’re trying to take advantage of the relationship with you….or both…[/quote]
thanks for advice. will take into account and seek advice from friends also.
the numbers definitely don’t work out. ie the “mortgage”* will be higher than rent. Not to mention taxes and maintenance.
*I put “mortgage” b/c this will be all cash transaction.[/quote]
Why do an all cash transaction when interest rates are so low? Looking at interest rates tracking house prices over the last couple of years, the monthly payment seems to have stayed the same, tracking the prices pretty closely relative to interest rates. If you do all cash, it seems you’re paying a premium price that’s premium due to low rates, but not getting the benefit of the low rate? Or is it because the rates on an investment property are too high?
