Any Investors RENT their personal residence??

Question

Was wondering if any other Investors on the forum rent their apartment or home vs owning.  Im thinking of selling my home based on the cost of living rather than the luxury of owning a home.  Honestly,  I dont care anymore about my 3/2.  Its (in my opinion) over priced and unnecessary for my needs.  I actually feel I want to return to a smaller more efficient living space vs constant maintenance, high taxes, and mechanical/structural wear and tear.  Just want to simplify everything.   When something breaks, I call someone else.  When there is a problem, its not my problem.  I already have this system setup in my rental properties that I own!  But as far as cost goes, in South Florida I think Im ready to cash out on my over inflated home and go back to simplicity.

Aaron Hall · Answer

The three T's are what it sounds like you would like to avoid - well at least 2 (toilets, taxes).  With any real estate decision think about your short term and long term goals.  What are yours and how does this property play into both?

Short term - how to manage the headaches of owning (maybe apply your system to your own property).  Simplify - downsizing sounds like a real good option, do you have to stay in your current location or could you move to another town/county/state? This could help you capitalize on the "over inflation".

Long Term - Do you want more buy/holds? Should you hold this and turn it into another rental?  If you can TRULY cashflow then hold it and make some money while the property continues to appreciate.  Move into a new smaller home and then you have another investment property with primary residence rates.

Hope this helps you figure out what you want to do to reach your investment goals.

--Aaron

Steve Vaughan · Answer

I think I could rent if I was single with no family and traveled a lot. That or rent out rooms in my house.  One would have to be someone really handy apparently.  Sell it and simplify. (unless you will now have an angry wife and kids stacked like cord wood in your studio apt!)

Kerry Baird · Answer

We've got kids at home so still need space for them, and the requisite family dog.  Cost to own a 4 bedroom, not on beachside, is $2000.  Cost to rent similar pool home, not on beachside, $2300+.  I think renting a primary home can be a good strategy at some stages of life; right now I like the strategy of getting an owner occupied, low down, low interest rate mortgage and then moving out after 2 years to do it again, renting out the first.

Mike Nelson · Answer

Thanks for the feedback.  Yes I agree with the notion of not wanting to live crammed among the masses and believe me, If I was living back in the Midwest where I grew up I would certainly own a home.  But South Florida is unlike any other place Ive lived ( which includes several regions of the country).  To live in a "decent" neighborhood, you are going to pay through your teeth.  Its just the way it is when you have such a dense population and very few well kept cared after neighborhoods.  All my rentals are in other regions of the state where prices are a fraction of what they are here.  Im just tired of making payments with ridiculous property taxes and home owners insurance premiums when I really don't feel I get anything for it.  Not to mention my home is completely overvalued (in my opinion).  Land is very scarce here, so the options really suck.  I travel a lot so am never really home.  I think its really a regional thing.  I might just pack up and move over to Cape Coral as its just getting to crowded here and real estate prices are unbelievably overpriced.

Bryan Williamson · Answer

we started out by renting it on the vacation rental sites. Great way to generate some cash flow but it's work unless you hire out the cleaning and someone to respond to your inquiries. We made a little over 40k last year.

Account Closed · Answer

nope, never have! (unless on-campus college housing while matriculated counts)

neither have ever owned an apt/condo nor ever in an HOA subdivision. just not into sardine living nor living under house rules.

it wreaks of irony in my opinion if an re investor owns real estate (whether commercial or residential), yet leases their residence from another owner.

however, there are many scenarios that would justify that, ie, a commercial investor who owns his own store/office and a portfolio of other commercial props, but for residence, simply choses to rent.

likewise, what i've actually seen in MOST cases is real estate investors who have a huge portfolio of residences owned, but RENT their commercial office. that's pretty much the norm, so its good to acknowledge the fact that many/most re investors do not own their commercial place of business (if any), but rent it from someone else!

and when relocating cross country, its either that (rent residence at least temporarily) or extended stay hotels and the like til close on residence. i opted for extended stay cuz there was more freedom/flex than most leases afford esp since just temp/short term.

and i do know of some mature 'investors' who still live in their parents house interdependence style, like in the basement and stuff, and seem to have no interest in independence.

can totally fathom the need to take in elderly parents when the time comes, lest they be placed in nursing homes. but living in parents basement or garage while being a supposedly established re investor is quite ironic too for it is what it is.

David Krulac · Answer

I don't and never have, but I have met a few people who do rent their personal residence.  One investor rented his home on the ocean largely because he could rent it much cheaper than buying it.  He always looked for a high end house to rent cheaper.

Another investor lived in a high price city but had his investments in lower priced markets and rented his personal residence.

Mark Brogan · Answer

that is a very good idea in my opinion @Mike Nelson that is what i did as welli like the idea of being a tenant and not having to fix things because i fix enough things in my everyday working life it is for sure costly to own those fancy homes i would sell it and buy more investment property with the profits

good luck