Hey, I'm thinking about something, and despite being well known as the guy on FOH making solid and rational decisions when it comes to important things... thought I would ask some advice here.
So, I currently own a home, I owe a little less than 180,000 on it, and have 12 more years on the lease. My current homes value is 380,000-400,000. I've stumbled upon a recently renovated duplex (two bedrooms on each unit, plus a 1 car garage each) in a nice location in my town. I checked the Zillow and it looks like someone bought it in 2021 for $220,000, renovated it, and resold it in 2023 for $330,000. No clue why the new owners are trying to sell it within a year of buying it, but my guess is they would be happy walking away with the $330,000 they put into it.
I checked local apartments, and for a 2 bedroom they are running $1200+, so I'm guessing I could get $1400+ per unit on this duplex. Also, my wife and I have a monthly surplus of about $4,000 AFTER what we budget for, so even if we had no tenets, we could make the monthly payments ourselves (Assuming no major life changes, which is always a risk). I do think we could put down the down payment, but would have to finance the rest, and it would wipe out our savings/emergency fund. The other option would be to borrow against the equity on our current house for the down payment, to ensure we still have a pile of money on hand just in case.
Do you guys think this is something worth looking into more, or should I really not be considering this?