Buying Home And not living in it?

Question

Hello i was wondering if taking out a mortgage for a single family home first time home buyer and not Occupying it or renting it out and paying the monthly mortgage myself would be a bad idea investment wise. and then after 1 year rent it out? as i really dont need the home i would just like to invest in renting it out as it would take me a while to save up 20% for a down payment for a investment property thx

Matt K. · Answer

please walk me through how this makes any sense using numbers...

Jim D. · Answer

Terrible idea, financially and legally.

Upen Patel · Answer

@Frankie Betancourt Buying a property as owner occupied and then renting out right way is mortgage fraud, a federal offence. If you buy the property as owner occupied, then you have to owner occupy it for at least 1 yr.

Naftali Tolibas · Answer

I agree with @James Marshall and @Matt K.

Ethics.

Nathan Platter · Answer

Hi @Frankie Betancourt ,

If you take out an FHA mortgage, you or an immediate family member must owner-occupy within 60 days https://www.fha.com/fha_article?id=371

You are most likely asking for an investor loan, which is currently 25% down. Most investors start with "house hacking", getting a 2-4plex and then renting out the other units and owner-occupy one of them.

yes, buying and renting out property is a wise idea as long as you rent to good tenants and charge them sufficient rents to justify the cost of owning the property.

Buying Home And not living in it?

Most Popular Reply