Rental property, primary home?

Question

A friend is going to walk away from a property in NC -defaulting on loan- and we offered to purchase for the remaining loan amount. The home is valued at 132k (sale price estimate for it and comparable 140k) and we would be purchasing for 70k. We spoke with a local property manager and she said the property is ideal for renting in the area and she would likely have it rented in 4-6 weeks. The rent (800-850) would be twice the estimate mortgage payments (325) and would provide 200-300 month profit. 
We are currently renting and were intending to purchase our own home in the next 6 months or so. My husband has a product going to market 2 months from now that could lead to a startup company if it does as well as expected. If that is the case we would be moving to TX for the company but we currently don't know if this will be the case. If it doesn't work we were considering moving to this house in NC to save money for a more substantial down payment for a home in a more ideal location for us.

We aren't sure how to proceed with the purchase- should we buy it as a primary residence or investment property. We are concerned that the purchase of this home as a primary residence  could complicate the purchase of our residence in TX if the company works out. However, the higher down payment may be an issue for us to buy as an investment property.

Any advice would be appreciated.

Matt Devincenzo · Answer

Erika you also need to be ready to move if you do buy this home as owner occupied. I see that you have a location of Maryland but the house is in NC. If you buy OO you will have to move in within 60 days so be prepared for that in your planning.

Bill Gulley · Answer

Welcome to BP!

I suggest you go one day at a time with the reality of your situation. You're saying you have a bird in the bush, not in hand and you might move to Tx. But today you're renting and have a good deal as an owner occupied home. I suggest you act on what is, not what might be.

If the future improves, you may not need to move immediately, it could be several months.

If your circumstances change and you need to move, you can always inform your lender of the circumstances and your need to move out of state. Lenders accept that things happen and they don't call your loan.

Now, if you know you're moving, then there is an issue trying to get a property with an occupied loan as that can be fraud. But, if you are not sure you're moving, that you can just as easily stay in the new home, then proceed with what you know today. If you could predict the future, you wouldn't be buying that house, you'd be cleaning up the stock market.

I suggest you look at your reality today and act on that, based on what you know. Good luck. :)