It’s time to answer real estate investing questions!
“We’re thinking about buying a duplex on a beach in a popular vacation destination in Florida. If the property stays 85 percent occupied as a short-term (VRBO) rental at current rates, the income from one unit of the duplex could cover the costs of a 30-year mortgage.
“Our goal is to move to this location in five years. We were going to wait until we moved to buy, but this duplex came on the market, and we think it might be a good deal. We could buy the duplex, rent out both sides for five years, and move into one unit when we’re ready.
“But if a recession hits, Florida real estate might tank. The rental rates or occupancy could drop. And we’d be stuck paying the mortgage out-of-pocket, which means we might not be able to retire. Should we take this risk?”