What would you do in this case? Buy or rent

Question

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)

Nathan Killebrew · Answer

You could possibly do a short-term lease. Maybe 6 months.

I know you've heard of house hacking by now, but have you considered that as an option.  Condo's are generally the first thing that goes down when the market turns.... I would proceed with caution if you are looking into condos.

House hacking would allow you to put a little down. (FHA loan) you are in the clear at that point with most of your capital and living expenses taken care of.