Posted 11/26/2012 09:56 (#2717878) Subject: buy vs rent
Hamilton, OH/ Browning, MO
My family has an interesting opportunity on their hands. Neighbor lady calls and wants to sell her farm, says she'd like us to have it. Our first thought was how often does this happen. We spoke with realtor and he says that 3K would be current value. We spoke with our bank and no problem. She calls back, after she accepted the offer, and has thought about it with the help of her tax person. She's afraid of taxes and would rather rent it, again we're first in line. Dad says ok, and puts the down payment money back onto another mortgage. Now she calls back and has a change of heart. Wants to sell it again for the 3K.
My question for all you smart guys is what would you do. Dad is older and doesn't really want to jump into a new farm payment this late in life, but it is next door remember. Going cash rent of 165-175. We can make money at this rent but its still just renting. For now it's our decision, but something needs to be done. Dad says that he can find enough money buried around for the down payment if he has to. Our thoughts are, for what the rent payment would be, it wouldn't take much more for the mortgage payment. Pretty sure I've answered my own question, but still wanted to get other opinions.