Get Your Fiscal House in Order

In the current economic climate, Americans continue to feel financial vulnerability and job insecurity. Tonight President Obama will address some of our collective concerns in his Jobs Speech wherein he will likely propose “…a combination of new and extended tax cuts, new spending on public works projects, and assistance for those who've been out of work a long time”, according to NPR’s Scott Horsley.

And while it may be the wrong time for some to buy their dream house, it may be the absolute right time to take control of their future by doing things a bit differently. Everyone needs a place to live, right? And in Durham, there are some great real estate opportunities available, with a varied housing inventory for all comers. For instance, maybe it’s time to look at this unique home with rental apartment, a rare breed indeed in Durham. 

Listed for $275,000, this well built 4 bedroom ranch on School House is ripe with fantastic options for flexible living. You decide if you want to rent the 3 room apartment to offset your mortgage payments (current rent is $750), or keep extended family close and possibly free up a mortgage payment they are struggling to finance. Crisp and clean one floor living in the updated ranch with 1946 square feet offers separate EVERYTHING - kitchen, bedroom, bathroom and living room with fireplace - all with a private Trex deck. The apartment also has its own entrance and basement for total independence.

The main house affords 3 more bedrooms, hardwood floors, new appliances, fresh paint, dining room, living room and much more. The deep and level 2.44 acre lot is dotted with mature trees, and is ready for your most elaborate plans. With little left to do but ponder how best to outfit the large shed/barn and get ready for move-in day, let's do the math on this well priced home.

Let's plug in a mortgage loan amount of $220,000 (to avoid PMI). Based on a 30 year fixed mortgage with today's rate of 4.375%, you pay monthly payments of $1098.43. Now subtract the apartment rental income of $750 from your monthly payment, and you are only spending $348.43 a month. What if you decide to get a 15 year fixed instead at today's rate of 3.25%. Your monthly payment would then be $1545.87, less the apartment rental income of $750 leaving you with a net payment of $795.87 a month. In this scenario, you would have 100 percent cash equity by 2027, plus a continued source of rental income. The good news is that the Federal Reserve plans to keep interest rates low while the economy remains weak, so opportunities like this one are within reach. 

For more information about this great property, please call me (860) 918-4580.