Should I Buy this Single Family Home or Stay Put?

[The Mobile Mustachian]

Hello everyone,

I currently live in a duplex that I own and have found a single family home in a nice part of town that is undervalued because it is in need of minor repair and updating. I would appreciate your feedback on whether you recommend staying in the duplex or buying the new property.

Living in the single family home will increase our monthly expenses by $550 per month including the increased cost of maintenance, utilities, travel, mortgage, taxes, and insurance. The property is priced at $209,000 and the market value once updated is $310,000 at current market pricing. The total cost to repair and update is $30,000. The plan would be to live at the property when FIRE is reached in 10 years, though we will only be living there 6 months of the year when on the East Coast.

Please feel free to follow up with additional questions. Thank you for your feedback.

[Emg03063]

Why not buy the home, renovate it and rent it out while continuing to live in the duplex?  Will it cash flow as a rental?  Where would you live when FIRE for those 6 months if you don't buy the property, and how long will the added expense delay FIRE?

[marty998]

I've seen this question asked before and answered it exactly the way you did Emg03063

[aj_yooper]

By buying the sfh, you increase your monthly expenses by $550/month, for sure, decrease your capital/net worth by $30,000, and add a second property in an area where you will spend 50% of your ER.  If it doesn't work as a rental, I would not do it.