Benefits and drawbacks of rental options between apt, coop, condo, two-family house

[PRIYA K.]

This is an amazing site with lots of information and knowledgeable, experienced people. I am hoping you can share your thoughts and sound advice on what is a wise investment choice between co-op, condo and multi-family house. I understand that what is a wise choice for one person is not wise for another person so here is some information about me.

I work as a web developer, and my job security is not great. So as a means of creating a safety net, I am considering the idea of owning a property and renting out. First off, will this be a good safety net or will it bring chaos and pain?

Currently, I live in a 2 bedroom rent-stabilized apartment that has imperfections and it is not in a great neighborhood. My rent, gas/electricity, phone bills and cable sums up to $950 month. My first option that I am considering is to continue living here and rent the second room for 550 a month so I save 400.

My second option is to rent each room in the apartment and I buy a co-op and live in it. Renting out the 2 rooms in the apartment, I hope to bring in $1200. Thus I will profit 200 or maybe 250 monthly depending on electricity/gas cost. If I buy a co-op for 200k with maintenance of $750, my monthly mortgage plus maintenance will come to $1400 for 30 year loan for 140k with 3.75% interest.

My third option is to vacate the rent-stabilized apartment and buy 2 BD/ 2BA co-op for 250k or less with maintenance of $800 or less. In this option, I hope to rent the 2nd bedroom for $850. I plan to take a 190k loan for 30 yrs at 3.75% interest rate, in which case my monthly mortgage will be $880.

My fourth option is to live in my apt and buy a condo which will be rented to someone for 1300. I would consider a condo worth 300k or lower. Assuming the maintenance for the condo is $500 or less, if I take a 240k loan for 30 yrs at 3.75%, my monthly mortgage will be $1,111. In this scenario, my total monthly cost will be $1611 and my earning will be $1300. Given that I will be spending $950 for my own rent along with $311 to make for condo’s monthly.

My fifth option is to buy a multi family home where I live in one level and rent the other level to someone for 1300. I would consider a multi-family house that’s worth 400k or lower. If I take a 350k loan for 30 yrs at 3.75%, my monthly mortgage plus property tax will be around $1,900. In this scenario, after earning $1300 from renting, I will take that money and add $700 of my own to pay of $1900.
Out of these five options, I like to know which one is the smartest choice in terms of
*savings
*equity
*risk
* anything else to consider?

Advance thank you for your input!!!!