New to REI and looking for advice

[Greg Thomas]

Hi all,

I am a new investor and looking for advice. My son will be going to grad school for Physical Therapy in the fall in Coral Gables, FL and we want to buy a home for him and his girlfriend to live in. Miami is SO expensive, but will probably look north of Miami in the Davie/Miramar/Pembroke Pines areas. We currently own our own home free and clear (worth $650K) and will do a cash out refinance to pull out 20% for the down payment.

We want to purchase the home and rent back to them and hopefully sell (or keep as a rental) in 3 years when school is done. 

I am self-employed and wondering do I purchase the home in Florida as an investment property - or a 2nd home? Are there advantages to either?

Thanks in advance.

Greg

[Alex Breshears]

So there is another option you may not have thought about. Many areas, especially in Florida because Boomers are moving down or needing additional care givers space. Many homes now are either adding, or even being built with, separate in law suites, maybe an apartment above a garage etc. They are still considered a SFH so you could do the 2nd home loan, and truthfully go visit through son and stay in the in law suite etc. Also - they can then potentially run that additional space as a short term rental when you are not there. You may need to dive into the STR laws and regulations down there.