We are currently renting a 3 BR 1.5 BA for my family of 4. Not quite sure on sqft, but I'd guess 1,200-1,400. Rent is $1,400, and is below market.
Then there's this gorgeous house for sale. It is 3 BR, 2.5 BA on the 1st and 2nd floors, and a separate entrance 2 BR 1 BA apt. on the 3rd floor. Total home sqft is 4,032, so we are talking 2,688 main home and 1,344 for the apt. List is $550K, let's say we get it for $530K and put down 20%. Assuming a 3.9% interest rate, $7,500 in property taxes, and $2K in insurance (for both the main portion of the house and the apartment), the monthly payment would be about $2,800/month. The apartment rents for $1,400/month. So at first glance, it sounds like this amazing house will cost the same as our current place, $2,800 - $1,400 = $1,400.
But then I need to factor in increased maintenance costs ($5,300 annually for whole house), increased utilities ($100/mo? IDK. No clue...), potential apt. vacancy ($1,400), etc.
I would guess buying this place would cost my family an additional $660/month over what we currently pay for housing. It would also cost us a lot of time, because I hear that's what happens to homeowners. Plus some time for the whole landlording thing. That's another $140/month if we decide to hire a property manager.
Sounds like a bum deal, right?!
There's a part of me that wants to be stupid, not crunch the numbers beyond my second paragraph and just do it. It is a beautiful house.