Rent vs Living in house for minor repairs.

[Ben Swin]

I am currently locked in a lease but have a unique opportunity. I could potentially purchase a house way under market value. This is a great thing because of the future potential of profit. I am wondering would it be better to rent the house for the first year and make minor repairs and fixes, writing off the expenses or to move in the house make the repairs needed? Eventually I know I need to live in the house two years to be exempt on the capital gains. However, with all other factors constant, what would be the best financial option to maximize profit.

[Aaron K.]

Do you need owner occupant status for the loan?  If so that could influence the decision.  Depending on how long your lease is and how long your escrow is and the necessary repairs, you might not be paying double for very long.  Also depending on how large the property is and where it is you could consider Air Bnb.