I am currently renting but looking to buy in the Minneapolis market. I am a first time home buyer looking to purchase a condo, however I only want to live in the home for 2 years and then turn it into a rental property. What is holding me back from purchasing is I am having trouble finding properties that will cash flow (~$200/month gap at current rent prices in the market).
I can afford to buy now and hate to continue throwing money at rent, but I fear it is a bad investment down the line to have a negative cash flow rental property. Am I better off renting for another 2 years and not purchasing a condo at all? I am assuming it will cost me $40k+ to continue renting in my market, cumulative over the next 2 years. OR will the losses from negative cash flow be offset by 1) potential appreciation of the property, 2) tax deductions, 3) potential rent increases and 4) 2 years worth of equity gained vs. spent on renting.
Any advice or opinions are appreciated.
Thanks!
