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Hello my wife and I are considering purchasing both units of a duplex and would like some advice on where or not this would be a solid finicial decision.
Currently we pay $935/ month in rent.
The duplex we are looking to purchase would be 280,000.
20% Down = 56k not feasible currently
10% Down = 28k possible, but will eliminate Emergency Fund
5% Down = 14k thinking to pay for it with liquifiable stocks
Our current savings consists of the following
15k Emergency Fund
14k Liquifiable Stocks
Retirement Savings
6k Roth IRA account (going forward we cannot contribute to it)
14k 401k Wife
1.5k 401k Self (Just started, but contribution reach the gov Max for this and future years)
We would be carrying the whole mortgage until early winter at which point my parents will be occupying the other unit and paying a rent of $800/ month. In the iterim they will pay for 1/2 the utilities and maintance.
With my parents relocating here both our jobs are secured by a five year contract.
ok first question is should we even be considering this arrangement. We would end up owning both units, but the $800/ month rent would not cover half the mortgage payment. They would be there for a minimum of 5 years, and currently it seems a good time to buy as the housing market is down and interest rates are acceptable.
Second question we were planning on waiting till May of next year to make this purchase that way we would have at a minimum 20% down in cash. Having 20% down seems to be the general advice from other post I've seen about home purchasing, since it aviods PMI. I had never even considered doing it any other way, however that was when we were planning to buy a single home for under $160k. So does it make sense to for us to do this with 5% down.
Finally, my wife and I will earn ~150 -160k/year combined ... does 280k seem extravagant for our income level?
Worst case senario, I will be able to pay the mortgage payment + an extra 1.5k towards principal each month ... 2.3k once my parents move in.
Best case senario, I will be able to pay the mortgage payment + an extra 3.5k a month.
Currently we pay $935/ month in rent.
The duplex we are looking to purchase would be 280,000.
20% Down = 56k not feasible currently
10% Down = 28k possible, but will eliminate Emergency Fund
5% Down = 14k thinking to pay for it with liquifiable stocks
Our current savings consists of the following
15k Emergency Fund
14k Liquifiable Stocks
Retirement Savings
6k Roth IRA account (going forward we cannot contribute to it)
14k 401k Wife
1.5k 401k Self (Just started, but contribution reach the gov Max for this and future years)
We would be carrying the whole mortgage until early winter at which point my parents will be occupying the other unit and paying a rent of $800/ month. In the iterim they will pay for 1/2 the utilities and maintance.
With my parents relocating here both our jobs are secured by a five year contract.
ok first question is should we even be considering this arrangement. We would end up owning both units, but the $800/ month rent would not cover half the mortgage payment. They would be there for a minimum of 5 years, and currently it seems a good time to buy as the housing market is down and interest rates are acceptable.
Second question we were planning on waiting till May of next year to make this purchase that way we would have at a minimum 20% down in cash. Having 20% down seems to be the general advice from other post I've seen about home purchasing, since it aviods PMI. I had never even considered doing it any other way, however that was when we were planning to buy a single home for under $160k. So does it make sense to for us to do this with 5% down.
Finally, my wife and I will earn ~150 -160k/year combined ... does 280k seem extravagant for our income level?
Worst case senario, I will be able to pay the mortgage payment + an extra 1.5k towards principal each month ... 2.3k once my parents move in.
Best case senario, I will be able to pay the mortgage payment + an extra 3.5k a month.
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