Over the holidays I had a discussion with my sister and her wife about buying a two-unit rental property that abuts their house.
It is habitable but judging from the outside (plywood where a window should be) we think the inside is in rough shape. We think it will fetch between $550k - $600k based on value in Zillow/Redfin, etc. and would probably need $150k - %200k or more of work between the roof and whatever interior work needs to be done.
My sister-in-law said she's happy doing the job of managing the property and she's the more "handy" of the two. I personally dislike doing that kind of work, but would if need be.
In order to do this, I'd have to liquidate my taxable position ($100k) and maybe dip into my I-Bonds ($30k). I'm not otherwise very liquid.
Upside:
having a steady-ish source of income
real estate prices in our city "should" continue to grow over the next 5-10 years. I have no crystal ball, obviously but I don't expect the property value to fall significantly, if at all. (Boston's weird like that.)
Downside:
investing with family could end up ugly once large chunks of money are thrown around
we could be wildly underestimating repairs and maintenance costs
being a landlord may end up being a huge pain in the neck (but my sister and wife will be dealing with them, mostly)
...and most important-- this throws a wrench into my existing retirement plan, sinking a bunch of capital into a property
I'm leaning "no" but wanted to see what experience the BH community has had (1) being a landlord and (2) owning property with family
Thanks,
JJJ
It is habitable but judging from the outside (plywood where a window should be) we think the inside is in rough shape. We think it will fetch between $550k - $600k based on value in Zillow/Redfin, etc. and would probably need $150k - %200k or more of work between the roof and whatever interior work needs to be done.
My sister-in-law said she's happy doing the job of managing the property and she's the more "handy" of the two. I personally dislike doing that kind of work, but would if need be.
In order to do this, I'd have to liquidate my taxable position ($100k) and maybe dip into my I-Bonds ($30k). I'm not otherwise very liquid.
Upside:
having a steady-ish source of income
real estate prices in our city "should" continue to grow over the next 5-10 years. I have no crystal ball, obviously but I don't expect the property value to fall significantly, if at all. (Boston's weird like that.)
Downside:
investing with family could end up ugly once large chunks of money are thrown around
we could be wildly underestimating repairs and maintenance costs
being a landlord may end up being a huge pain in the neck (but my sister and wife will be dealing with them, mostly)
...and most important-- this throws a wrench into my existing retirement plan, sinking a bunch of capital into a property
I'm leaning "no" but wanted to see what experience the BH community has had (1) being a landlord and (2) owning property with family
Thanks,
JJJ
Statistics: Posted by JoeyJoeJoe — Wed Dec 27, 2023 12:18 pm — Replies 0 — Views 28