Buying Investment PropertySubmitted by Luken on Tue, 11/20/2012 - 12:51
This is my first post on the DP and I have a question for everyone. I have a chance to buy a small house on a triple lot that is located directly behind my own home. The property in question is a small 2 bedroom house built around 1900. The house is structurally sound and livable but would need repairs externally as well as internally (all of which I could do myself), the yard is huge by local standards with abundant space for a large garden. The asking price is 24,900 but I believe I could get it for around 20,000. My intentions for the property would most likely be to eventually use it as rental income and more garden space. My question is this: In this economy and based upon what may be happening in the near future is it worth taking a small loan out to buy a second piece of small town property (population: 890)? (I do not have the cash to buy it directly but I would be able to pay it off fairly quickly (2 to 3 years) even without renters.) So what are your thoughts? Thanks in advance.