Rent vs. Buy at similar monthly price ranges

[Tanner Shore]

Hi everyone,

I am having an internal debate. I am 23, and I plan on getting my own place soon. I live in southern California, so renting an apartment isn't the cheapest. I have found a few apartments for anywhere from $1700-$2000 per month. At these prices, I am thinking if it might just be better to buy a home for $350-$400k and have a monthly payment around $2200. This way, I will see the benefit of appreciation and start building equity and not waste money on renting an apartment that I'll only live in for a few years. 

All at the same time, I want to buy rentals OOS so I am not sure what route to take. I would love to house hack, but I would only want to with a duplex (because my Fiancee wouldn't want to share a unit with strangers) but duplexes aren't that available where I am. Any advice would be appreciated! 

[Frank Jiang]

Owning your own home is preferable for the following reasons.

1) If the monthly amount is similar, that means the monthly cost of ownership is likely lower.  A portion of your payment goes towards the principal and you receive taxation benefits on the interest.

2) After living in the house for two years capital gains of up to 250K (500K joint with spouse) are exempt from taxation upon sale.  This is one of the best ways to increase your net worth as a young person.