@Chingju Hu
Reading this thread has certainly been very interesting. Without a doubt there are various points of view. Personally I think it comes down to personal preference and personal strategies for making your plan work. You plan also comes down to how you plan to finance/implement that plan. For example, I currently own 3 rental units, but before they were rentals they were my primary residence. I'm in the military so my strategy thus far has been to buy a primary residence, live in it for a couple years while stationed there, then rent it out once I move. I already own a house in San Diego, but when I deployed to the Middle East last year I put all my things in storage and rented it out. This summer I'll return from deployment and instead of returning to my own house in San Diego I'm planning to buy another house and live in it for the next two years until I get orders to move to another city, at which time I'll start renting out that property as well. For me, this strategy works well for reasons that in my opinion suit me well. For one, by buying a primary residence I've been able to finance at a lower APR with little or no money down. The house I plan to buy this summer will only require a 3.5% down payment because I will use a FHA loan to fund it. So I'll only tie up $15K-$20K of my own personal cash in a house that costs $400,000. That said, when I rent it out it won't cash flow. In fact, I may have to come out of pocket $200-$500 dollars per month (if I continue to put money away for major repairs/expenses, which of course I do to protect myself from future mishaps). However, because I'm in the military (I've been on active duty for 17 years now) I have a certain degree of job security that other careers don't offer. Yes, as a military Officer I can still be "fired," but unless I suddenly become a 'bad' Marine, that is unlikely to happen. So I've got a guaranteed paycheck coming in as long as I'm willing to continue serving (or at least for another 13+ years if I decide to stay in that long). Because I have a guaranteed paycheck I know I can cover the out of pocket costs to maintain rentals in these high priced markets. However, because I'm buying property in high priced markets with a strong history of appreciation, I feel that if I keep these property for 15+ years, the equity built up in these properties will more than make up for my out of pocket expenses. For example, the house I'm renting out now in San Diego accumulates $17,000 in equity every year ($3,030/month PMI); so even if I come out of pocket $500/month, that's only $6,000 for the year, so I'm still coming out $11,000 for the year on top. For me that's better than monthly cash flow.
Anyway, that's my own take on why I feel buying a primary residence can be a good idea. If you keep it as a primary residence it's certainly a liability, but if you buy it, live in it for 2 years (minimum of 2 years so you can save money on capital gain taxes if you ever sell it) and then rent it out, you convert that liability into an asset.
Either way, good luck pursuing your goals @Chingju Hu. I wish you nothing but the best.
