All Forum Posts by: Anand Raghavan

Thank you for the counter point. One thing I didn't understand was your reference to one year - "nothing wrong with renting a small place with zero obligation after a year". What is the significance of the one year mark? 

With the situation I am in, my family is not likely to move out of the area for at least a few years. In the meanwhile, barring any windfalls, I may not have many other good job prospects within a reasonable radius (and I am quite happy with my job). 

As of today I am not a real estate investor. Circumstances are putting me in a position where I have to work hours away from where my primary residence will be (we will be moving shortly). This means I have to spend a few days every week in City B, while my family & home will be in City A. 

My first thought was to just rent a small condo or somesuch in City B. I then realized that this city offers cheap real estate, and that I might as well get a mortgage and buy an inexpensive condo, thereby getting some equity back for the money I'd be throwing away. 

As I read more, it occurred to me that a second strategy might be to buy a small multi-family property if I can find one (say 2-3 units) and rent out all but one - which I'd occupy. My thinking is that while a multi-family property (that is in a relatively in-demand rental area) is going to be more basic than where I'd like, it's only a few weeknights - and perhaps the out-of-pocket monthly cost would be lower for me than just buying the condo. In either case I'd get a mortgage. Please set me straight if I'm thinking wrongly.

Now, one major question that comes up is that of the mortgage. I have read that one may avail of a low-down FHA loan for owner occupied investment properties. Is this limited to the house being a primary residence for the owner? Is there a distinction made for a secondary residence - as it will be in my case? If not, is there an alternative mortgage option that is attractive (in terms of down payment, or interest rate) for such a scenario? I appreciate any pointers, as I have zero experience.