I am currently thinking about purchasing a 2-family historic townhouse. The renter in the owners unit (Unit 1) pays $1133/month. The calculated mortgage payment including insurance & taxes would be $2300 (rounded). I plan on living in Unit 2.
Does this sound like a smart move? The same size lot next door is also on the same deed and is a yard for the townhouse. I plan on adding parking (granted I get approval from the historic area association). Hopefully that adds value as well since it is in a city.
I’m a newbie and would like to know if this makes financial sense and how much money will I be saving (trying to explain this to my father). so any help with numbers that can show value is greatly appreciated.
Also, I don’t know how to put in getting rent from a unit in a rent vs. own calculators. Those calculators show I am better off rent so I need help properly doing that calculation.
Thanks in advance.
Kagen327 wrote:(granted I get approval from the historic area association)If this property is under any form of heritage listing you may have a struggle to get approval for car parking – particularly if the size of the parking area exceeds what would be considered normal.
In effect it seems as if you are buying a place to live with a net mortgage of $1200/month.
Bear in mind approximately half your costs would be deductible as these could reasonably apportioned to the tenant's building.
Only you will know if the property stacks up. Go back and look at the fundamentals and see what prospects and opportunities it has.
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