Thank you all for the helpful questions. I'll try to answer them the best I can.
- The $902/yr is pretty locked in. May increase slightly over the years as the tax assessment changes, but I do not anticipate that being a large change.
- I would be paying cash; not borrowing any money.
- The space is not located near government buildings but it is in an area that is a hub for restaurants/nightlife. It is rare for rental spots to become available, and when they do, they are scooped up quickly.
- Yes, it's a high percentage of my net worth, but I believe a relatively safe move.
Erutio, sorry for my ignorance, but what are the 1% or 2% rules for housing RE? I'll also look into insurance, because I don't know the answer to that one.
Is the percentage return a better way of analyzing the value for the property rather than projecting how the money would do if it was in the market instead? My main point of comparison has just been to see what I would make per year renting the space, after costs, which totals $2,078. And then comparing that to the value I would get from between 3-8% returns in the market (compounded).