A friend of a friend (no real personal ties with this person) is wanting to sell his house and As you may have seen from a previous post I live in a city where it seems prohibitively expensive to buy. However his house is amazing in the fact that it has a very nice 2br 1ba guest house, that is renting for $1200, and others in the area are renting up to $1500, while 3 bedroom 2 bath houses in the area are renting in between $2000-$2500 . Houses in the area have been selling for around $500k lately, and I was wondering if we settle on a price is it reasonable to just hire some RE Lawyers to do the due diligence and avoid all the RE agent commissions? Would something like this save both the buyer AND seller money?
I did some calculations on
http://www.mtgprofessor.com/, at house prices of $500k, and $550k, and found that with a 3.5% down via FHA and 30-year Fixed Rate Mortgage, their calculator spit out $2747 and $3018/month for Principal+interest+mortgage. So presumably if I could get a price that is sub $500k it would be a good buy assuming that the house doesn't have any major costly repairs to be made.
FWIW, I would be living in either the house, or the guest house and rent the other.