Currently living rent free

4 Replies

I am in a situation where I am able to live in a house rent/mortgage free thanks to a family member. My question is, should I give up this opportunity in order to take advantage of a First Time Home Buyers loan to later move out and rent out the property? Does anyone have any advice as to what direction I should take in regard to purchasing my first investment property? 

Thank you very much in advance!

Well, that depends on what kind of prospects you have for finding something that you can use to make yourself some money. If there are duplex/triplex units where you are that you can buy, and you have good rents where you live and can put a down payment, then it probably makes sense. But if it's just a house for you to live in, not an investment, then financially speaking you can't do better than living for free since the home you live in generally tends to be a wash or lose money when you factor in everything - maintenance, furnishing, repairs, etc. 

@Jacob Billanti this is why investors advocate house hacking, especially for new investors. Other articles and videos on the subject of house hacking will provide much more insight then me trying to outlay every detail. Overall, the goal is to purchase a primary residence and rent to tenant's while still living in the property, hence, the objective of potentially living for free. House hacking can have a varity of forms, but your classic example is from investors who have bought a duplex, rented one side and lived in the other. The idea is to have the rent cover your mortgage and other associated costs of owning a property. At the end of the day, real estate is a time sensitive investment, the earlier you buy and hold the better. Hope this helps! 

Speed To Lead
Buy hot seller leads w/o subscription
Buy daily seller leads that are actually ready to sell
Finally there's a place where you can buy leads that asked for urgent help selling their house
Sign up for free

@Jacob Billanti you could use a first time home buyers loan and rent the property out while still living there. Just share the space and stay with your family for free most of the time as a perk to the new buyers. Lenders shouldn't care if you're staying at your other free house even most of the time as long as you pay your mortgage and don't try to qualify for another loan for a year.