All Forum Posts by: Rick Moccino

Hi, I have a similar question: When determining renting or buying for a primary residence, do you use something like the 1% rule, or do you compare to nearby rents?

My situation: High income, single professional in the Washington, DC area with high tax bracket

If I rented, I would probably rent a high amenities luxury 1BR-2BR apartment for $2500-$3000/mo, utilities and parking not included, all in $3000-$3500/mo

A comparable 1BR condo is at a minimum $500k without much amenities. More amenities starts to go to the $600k range. I'd be open to buying a 1BR, but conceivably return on a 2BR is higher, which might put you in the $600-700k range. Sort of house inflation though and buying more than I need.

But by cash flow, would it make more sense to just rent and use capital to go buy investment properties in other markets? 

Buying would give me the tax deduction, and I'd likely be eligible for some good loan terms. I don't have 20% liquid to avoid PMI but could get it, or I've heard of getting a secondary loan to avoid PMI which I could pay off quickly.

Love to hear your thoughts.