Buying Home And not living in it?

6 Replies

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

Hi Frankie,

To be clear: you would buy and let it sit empty for a year, pay the mortgage while paying rent on something else?

In my opinion, paying a mortgage on an empty house for a year doesn’t seem like a good investment. Not to mention that not occupying a primary residence purchase is technically mortgage fraud (definitely not mortgage fraud police, but that’s what a lender would tell you).

I would try to house hack or at least occupy the property. If you’re going to not occupy it, you may as well rent it out right away, since they’re both technically mortgage fraud. [Not legal advice!!]

Good luck!

Terrible idea, financially and legally.

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

Hi @Frankie Betancourt ,

If you take out an FHA mortgage, you or an immediate family member must owner-occupy within 60 days

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.

@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.

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