Purchasing Condo/TH - Houston Area - Advice!!!

[Chris Kim]

Hey everyone – Looking for some specific advice on the following scenario:

Thinking about purchasing a condo/townhouse in the Houston area for my college age kids. Cost of property will be $150-200K. We plan on using one of the rooms for personal use and rent out the other 2 rooms. Total rent revenue will most likely not cover the full 1% rule as we’ll use one room (acting as property manager. Assume our AGI is well above 150K, I’ve got the following questions. Note: at the date of this posting (5/22) interest rates have doubled and potential downward pressure on real estate.

Questions:

1. Intent is to buy as a real estate investment but can also potentially claim as a second residence. Advantages/disadvantages?
2. Advantages of buying cash vs mortgage: Note the AGI statement above
3. Simulated revenues will be $1200-1300/month and most of these homes have $3-400 maintenance fees. Any advantages of with buying cash vs. mortgage as above. As well as are there any other advantages.

Any feedback would be appreciated.