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Home Questions Buying Purchase home
Purchase home
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September 8, 2010, in Buying

I have an opportunity to purchase a home that a low income housing that has only 17 yrs left on a resale price restriction. This was done by city/county contract for low income price in a desirable location.
The home can't be sold over this consumer price index. the only reason this is attractive is the home can be set up to have a positive income, and still be a tenant, good/bad decision to purchase?

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Dan Rosenberger    December 4, 2010

First look at your objective. If you don't mind holding for a long period of time with the positive cash flow, then it might be a good situation. Remember that if there is a restriction on the sales price, that restriction would apply to everybody. So any other buyer is looking at these same issues. The restriction might actually be a good thing for right now because there are fewer buyers who would consider it. Maybe this would be a good situation for retirement. There are many areas where it is hard to find rental properties with consistent good positive cash flow.