Should I rent for live at home?

Question

Hey Guys -

I bought a house 9 months ago. Paid 183k just sold for 255k. Closes next month. I don't see any homes on the market I like. I also think it may be a bad time to buy. Can't really tell. Should I move back in with my parents for a bit and see if sometimes pops up that I like? Or rent for 6-12 months and just sit on the cash and wait.

What would you do?

Muhammad Amawi · Answer

Hey James,

I would move back in with my parents while continuing my search if I couldn't find anything. A house hack situation seems ideal here. It's also only a bad time if the deal doesn't make sense with your goals.

Have you considered other areas besides Cincy? Cleveland and Columbus are great markets as well.

Jon Kelly · Answer

@James Robert go buy a place and rent out bedrooms to 3-4 of your friends

Austin McClain · Answer

I would look to house hack another and hold it. As long as you don't have negative cash flow, you'll be glad you did that in 7-10 years.

Simon Ashbaugh · Answer

@James Robert I would recommend buying a 2-4 unit with a DSCR loan and living in one unit. You'll have your mortgage paid, and depending on where you buy, have passive income.

Rhondalette W. · Answer

@James Robert buy a duplex or fourplex and Live in one of the units and rent out others. Hopefully, renters can cover your mortgage.

David Shakhunov · Answer

Not sure how your relationship is with your parents and how it will be if you live with them. I am assuming it is good since you are considering moving back with parents. I would move in back with parents for 3-6 months. But let them know if you don't find anything within that time then you will start renting after 6 months. There are a lot of scenarios when someone moved in with their parents for few months and ended up staying a lot longer. I would set up expectations up front.

Patrick Drury · Answer

@James RobertI was just lower my expectations of location and condition to get the next rental with an owner-occupant instead of moving back in with my parents.

Eliott Elias · Answer

Save as much money as possible and be on the lookout for opportunity

Dave Foster · Answer

@Steven Wilson, I think that this is @James Robert's primary residence so it would not qualify for a 1031 exchange.

Steven Foster Wilson · Answer

Ideally, you would want to do a 1031 exchange but you would have to get that ball rolling now. If you are fine with living with your parents then broaden your search and look into exchanging it for an investment. Live with your parents until you find something you like and then buy the place you want to live in but get passive income from the investment and that way you will not have to pay all of the taxes.

My wife and I have moved 8 times in our first 8 years of marriage and that is not counting all of the times we had to move in with my parents because the property we bought was not finished yet or livable. I do not regret it at all. It helped get our real estate up and going. Without that opportunity, I would probably not have half as many properties as I do now.

Should I rent for live at home?

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