Hello there,
I've been really enjoying and appreciating the GCC articles, and one that has my husband and me talking is "Renters for Life." We have never been home owners, and would be fine renting our whole life, but we do have a unique situation that may make homeownership too good to pass up.
For the past two years, we have lived in our own hand built tiny house. Including the year before that during which we housesat, this will be 3 years of living both mortgage free and rent free, in exchange for farm chores.
We can't keep it up forever, however, because in about a couple months we will have a total of four young children! It has been a challenge and an adventure, for sure We are willing to stick it out in tiny quarters for now, but are looking ahead for our next step.
Option 1: We watch the housing market (we are in super hot Northern Colorado & looking to stay, as husband's great job is here and we are 10+ yrs from FIRE). If/when prices correct, we put $28k down on a ~ $280k house in a terrific downtown location with a walkout basement and a backyard for the tiny house.
We long-term rent the basement ($800/mo), VRBO the tiny house ($800/mo for 10 nights/mo; maybe we could do even better), and cover much of our mortgage and related expenses that way. Both the basement and the tiny house could provide many years of income into the future this way, even if we leave to travel.
Option 2: In a couple years, we sell the tiny house for ~ $30k, have the $28k down payment amount, and invest both. Rent a downtown house or apartment suitable for minimalist (but larger family) living for $1800/month.
What do you think? I?m having a hard time wrapping my mind around what calculations to do, comparing the sunk cost of a down payment to the potential income generation, etc. Thanks for new perspectives!
