What would you do in this case? Buy or rent

1 Reply

Hello, I will make this as short as possible.

My current lease ends at the end of the year. I own 2 properties that I am flipping (fully cash), both should be on the market soon and I expect to have one of them sold by November. I would have to sell at least one in order to pay off some debt and increase my credit score so that I can purchase a house (most likely a condo). I also have a property that I am financing, parents live there and pay for mortgage and all expenses.

So now I have 2 options and I am a bit lost on what to do:

1) Wait to sell one of my flips, then buy a condo to live in (put down 20%) - I may not be able to get the condo right in time before my lease ends so would have to figure out my living for a month or 2.

2) Extend my rent for another year and keep working with the capital I have

3) Buy a condo cash, wait 6 months and cash out from it (that would freeze a lot of capital for me)

Cash-flow is king. You haven't indicated how tight your cash flow would be if you buy the condo cash and sit on it for six months. A lot depends on that. Whatever you do, make sure you have plenty of extra free cash flow. If you can buy the condo and you're still comfortable from a cash flow perspective, and you really want the condo (or it makes better sense than renting) go for it. 

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