Investment Home vs Primary Short-term Vs Primary Long-term Home

[Irfan Ali]

Objective: To create real estate equity and rental income with saving of 70k toward home investment or primary residence

Situation: Buying Rental Property or Short Term Home Vs Long Term Primary Home

Background:

We currently own a SFH. Our children do not go to school but will start in less than 2 years old. We would like to move to a house in a better school district. However, we would like to keep our investment options open when making this move.

Current Home value : 335k (Rental Potential 2000-2500)

Loan: 230k left on 15yr @2.75

Options Considering:

 1. Buy New Town Home with future rental potential as primary home for 4-5 years keeping same monthly payments and good elementary schools and good amenities and continue to save 

2. Buy 525k 25yr old SFH in highly ranked school district but with bigger loan and increasing total monthly payments by 1200 with no amenities

 3. Stay in the same home for two more years and buy rental property valued under 150k.

I'd like to add that I have no intention to sell my current SFH in any of these options. I would like to rent it out.