Buying and Living in a $40,000 cottage for future down payment?

[Wade Alderson]

I got to take my wonderful step mother for her chemo treatment and during her treatment I took a walk around the neighborhood and saw some really nice cottages among the solid class c homes. I brought up Zillow on my mobile phone and found that there were a few homes for sale around the hospital for between $40,000 and $100,000. 

I got to wondering that since there is so much bias against buying a sub $60,000 home as a rental unit if buying one to live in and plowing money into the mortgage over the next 4 years so I could sell and use that money as a down payment on a small apartment. 

Anyone have any thoughts on this.