1. Living in the property may qualify it for a Homestead Tax Exemption and decrease your Capital Gains.
2. You'll better understand the benefits and challenges of the home and it's surroundings.
3. You'll qualify for primary residence loans, which are incredible right now.
4. There are no holding costs if renovations are required. You have to live somewhere, right?
5. Being present allows you to be more involved and oversee contractors since you're there during off hours.
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4 comments:
Great tips, thanks for sharing! I definitely think I have a mind for doing what you do - I just don't think I have the "balls". I think I'd like to try it one day to see how I handle the stress, but I have some other things to do first. :) (Like fix my own a/c??? It's HOT!!!)
We have a rental property in the Vail Valley that we lived in first, and then decided to keep when we moved back to Texas. One thing that I would add to your list is not to buy investment property that you can't afford if no one is renting. Hee Hee. I don't know HOW I would know that, but my roommate in-laws might have an idea!
Agreed! Our first home eventually turned into our first rental property and learning the ins and outs of the property was the best experience. We knew the HVAC would go out within the first 3 years (and it did) and that the dishwasher was on its final leg (and it was). It realistically reminded us of the pros and cons of the home and reassured us that this investment was a good one.
-Cara
Great tips!
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