Idaho

http://www.zillow.com/homes/for_sale/Hauser-ID-83854/113138716_zpid/94352_rid/any_days/47.690056,-117.015907,47.682805,-117.036849_rect/15_zm/1_fr/

Housing analysis

$1591*2 = take home pay on $55k in idaho

Assume 20% down and no PMI.  Need $79k cash + whatever other closing costs.

=$1419 principal + interest per month (mostly interest… booooo).

Monthly cost = $1419 p&i + $173 tax + $116 property insurance – $787 (net rental income) = $921

$921/($1591*2) = 29% of take home pay.  Bad but not impossible.

15 year is out of the question, so you’ll be losing at least $2360/year assuming 1% different in loan rate.  $293k in opportunity cost over 30 years assuming $200/month.

6 months of emergency fund is at least $15k.  Probably want more like $20k because you’ll need reserve money for repairs / vacancy / etc.

$1400/12 = $116

This analysis doesn’t include property maintenance, which could be substantial given the # of buildings and 9 acres.

You’d want $100k cash to even think about going into this deal.  FHA would be stupid b/c the worse interest rate, PMI, and higher loan amount/payment would combine together into a deal killer.

 

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