If it were me....I'd go by the numbers.Ok,..let's see....Take 500k for 30 years at 7.5%.That would be around $3,500 monthly or 42K annually.Now add 8 or 10 k in taxes and your up to 50K or so.Insurance for a rental is fairly steep and there would be some maintenance.Let's say,around $54,000 per year in expenses.
Now,let's see what's coming in on the other end.If it's an attractive place with lake access,you should get $1,000 weekly. Lakefront will bring in much more,but double the mortgage.
Anyway,my guess would be that you'd be lucky to take in $15,000 and out of that you'd have to pay a fee to the agency.
Bottom line is that little love nest will cost you nearly $40,000 a year.Certainly not good as investments go, but certainly one that would hold it's value.
I'm not a realtor,I just took those figures out of my head......just guesswork.
|