West Palm Beach, FL - Rent or Purchase? Starting Out

[Ryan Jones]

Hello, my first post here and just getting started. I’ve been interested in real estate since before college and purchased my current home where I reside in 2012.

Background: We used to live in Palm Springs, FL but moved out of state about 18 years ago. My mom, who has some health issues, wants to move back to the area but isn't sure she will be comfortable there by herself (I live in CA, closest family would be NC and she currently lives in WV). I’ve been looking at seasonal rentals - the thinking here is that ~6 months will be long enough for her to determine if she can stay, then if she can, I'll purchase a condo. If not, she'll move back to WV and potentially come to CA near me.

In the West Palm area... seasonal rental options that are furnished, pet friendly, and appear to be in a safe area are 2-2.5k/month or about 12-15k for the 6 months (plus utilities). I'm surprised by how much this is for such a short period of time (also looked at 12 month at lower monthly rate but that adds up to even more) for a "trial" to live in FL.

The condo that we would purchase we prefer something simple and efficient below $150k and have even seen some potential options  below $100k - seeking a 2/2 single story, first floor, pet friendly from PBI area down to Del Ray without golf club membership required. So with 20% down, it would be ~$35k to purchase/close.

With the rent-to-purchase cost of the area, I’m wondering if it makes sense to skip the rental and dive in with a condo purchase? If she determines not to stay, then I turn the condo into a rental. I'm an engineer by background so I need to list out my decision/downsides. I see 4 potential outcomes:

• 1. Rent, decide to stay, purchase - $15k spent on rental was unnecessary given outcome with total "investment" of $50k (15+35)
• 2. Rent, decide not to stay - $15k rental spent on rental
• 3. Purchase, decide to stay - no negative outcome(?)
• 4. Purchase, decide not to stay, rent out condo - I own a rental condo in South Florida that likely is cash flow positive. No negative outcome (?)
  

Am I viewing these options correctly - option 3 & 4 which both start with "purchase" have no negative outcome?

So, should I be looking for rental friendly condos that she'll like and be able to live in but if she decides not to stay, I can rent out? What types of places or other things I may not be thinking of should I take into consideration?

Thank you in advance!