For those of you who arenâ€™t familiar with house and cottage itâ€™s a common term for buying two houses together in Hawaii.
I have sold allot of house and cottages. The reason I have sold so many is that the numbers work. Once you start adding up your mortgage, taxes, utilities, and other expenses, the added rental income makes a huge difference.
Letâ€™s look at a simple math equation. If you pay $600k for a property and you put $200k down you will be borrowing 400k. At 6% interest your payment would be around $2,400 per month. If you have a cottage your rental income might be around $1,000 per month depending on the cottage and the area. Now your out of pocket for your mortgage becomes $1,400 per month instead of $2,400 per month. I like these numbers much better.
Clients who thought they couldnâ€™t afford a home in Hawaii have been surprised when they add up the numbers for a house and cottage.