I was sitting in a class last night after speaking to a few local Real Estate Agents about buying foreclosed homes and some multi-units. I had one of those moments of clarity and I am not sure why I had not thought of it before.
When my wife moved back to NW Indiana to work in Chicago, she bought a two-unit near her mothers home. She rented the top (smaller apartment) and lived in the main unit. Her tenant paid a monthly rent of $375, that included gas and water, but paid electric.
She paid $79,000 for the house. I know for some of you across the country that is light, but In NW Indiana (Michigan City) that gets a decent house near the train station that is a two-unit and that was 13 years ago.
Here monthly was payment was $499 and that does not include taxes or insurance, but the renters paid nearly 75% of her monthly payment. Now, are you tired of renting? Would you like your monthly living expense to go down?
Really, with the higher loan amounts for NW Indiana. You could buy yourself a heck of 3 or 4 unit and live nearly debt free and could be saving so much for retirement or even buy a single family home down the road and keep the apartment building like we did with my wife’s first home.
A word of caution it is not easy to own apartments, but it is a great wealth building viehicle.
If you are a first-time home buyer in Indiana do no hesitate to give me a call. Dave Woodson (219)872-8000
