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Updated about 2 months ago on . Most recent reply

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Leyha Williams
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WHAT SHOULD I DO? Stay put or get tenant?

Leyha Williams
Posted

I am purchasing my first property and I am deciding whether I want to rent it out and get a cheaper apartment or stay in it and pay the mortgage myself. As of now my plan is to buy a 3bd 2bath starter home for $200,000. PITI will be $1600-1800. I will buy it in a neighborhood outside the 610 loop (20-40 minutes outside of downtown) in an up and coming neighborhood where rents for comparable properties are $1800-$2000. While my tenants pay that mortgage, I plan to live in an apartment closer to downtown for $900-$1200. Does this make financial sense? Is there anything I should be concerned about? Is there something that I am not considering? Please help me make this decision.

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Jeff Pasmore
  • Central Florida
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Jeff Pasmore
  • Central Florida
Replied

Leyha, let’s break this down logically. Your idea isn’t bad it’s actually a smart way to let someone else pay down your mortgage while you keep your flexibility. But here’s where you need to think like an investor, not just a homeowner.

I like numbers - I can lie numbers can’t - First, the numbers.

  • PITI: $1,600–$1,800
  • Expected rent: $1,800–$2,000
  • Potential apartment rent: $900–$1,200

At face value, you’re at least breaking even, maybe cash flowing a little. But let’s talk about what you might not be considering.

What could go wrong?( Think about this)

  1. Vacancy & Maintenance – If your place sits empty for even a month, you’re covering both a mortgage and rent. Plus, you’ll have maintenance costs—water heaters break, A/C units die, tenants complain. Are you financially ready for that?
  2. Property Management – If you’re moving 20–40 minutes away, are you self-managing or hiring someone? Factor in management fees if you don’t want those 2 AM ‘the sink is leaking’ calls.
  3. Reserves – Do you have at least 3–6 months of expenses saved? If not, this could backfire quickly.
  4. Tenant Risk – A bad tenant who stops paying can put you in a financial chokehold. Have you factored in screening, legal fees, and potential eviction costs?

What’s the upside?

  • You build equity while keeping your cost of living low.
  • You’re positioned in an appreciating area, meaning your asset should gain value over time.
  • You keep your downtown flexibility while someone else funds your mortgage.

Now does it make sense?

It can—IF you run it like an investor, not a hopeful landlord. That means:

  • Screening tenants ruthlessly.
  • Having cash reserves.
  • Understanding the risks.
  • Having a Plan B if your place doesn’t rent as expected.

If you’ve got reserves and a solid plan for managing the property, this could be a great way to start your investing journey. If you’re stretching your budget and hoping ‘everything works out,’ that’s where investors get burned.

What’s your backup plan if things don’t go smoothly?

I hope this helps you … Best of Luck

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