I only pay $500/mo in rent. Should I ever buy?
I live in a 3bd/2ba duplex that normally rents out for $1,000/mo. I have a contract with the landlord that makes me pay half rent – $500 – in exchange for doing all the maintenance for the 20 units on the street. It’s only me, my live-in girlfriend (who I split the $500 with), and one other maintenance man that does the maintenance for the property.
It’s honestly a very good deal. Most of the time I only finding myself getting called 2-3 times a month, to go out and replace a faucet or unclog a toilet. Once a year Make-Ready season rolls around and I’m forced to repaint and do maintenance on a lot of the units, and so I do it after work and on days off for about 2 weeks.
Similar houses in my area sell for between $175,000 – $225,000, and I’m having a difficult time calculating the total value my maintenance discount brings to the table, and how to factor that in to the home buying equation. No matter how I run it, it never seems to make sense to buy.
I’ve been looking into purchasing a duplex and get an introductory to Landlording, but again I have a hard time justifying moving.