Living With Tenants Advantageous and Disadvantageous?

[Steven Weaver]

Hi guys, I am looking for some clarification of the financial benefits of living in the property I am renting.

I am 22 y/o and will be investing in my first rental property this summer. Currently I am living with my girlfriend in a two bedroom apartment and am paying $520 a month for rent. I would prefer to stay in the apartment and rent my 4 bedroom house out to tenants, however, I have vaguely heard of some of the benefits to living in my rental property. Each room will be charged $500 a month for rent (so no immediate financial gain compared to the apartment I am in.)

I was hoping on getting some clarification on some of the financial benefits of living in the property I am renting, as well as the disadvantageous (if there are any).

Thanks! 

[Anthony Dooley]

If you paid market price for your 4 bedroom house, it would probably not cash flow very well and usually makes for a bad investment as a rental property. I would just sell the house, live with the girlfriend, and buy actual investment property where the ROI is worth the trouble. You can get 4% in an annuity and 10% in the stock market for example. If your house earns less than that after expenses and repairs, then it's not a great idea.