Home Buying in Burnsville>Question Details

Aviat, Home Buyer in Burnsville, MN

Is it better to buy 2 cheaper condos- rent out one of them and live in the other, or buy a more expensive townhome and live in it?

Asked by Aviat, Burnsville, MN Thu Mar 24, 2011

I'm trying to find a way to pay as little as possible for a place to live. If I buy the two condos, the rent price of one will cover all expenses- mortgage, association, property tax of both condos. Of course, because it's a condo, garage is not attached and it has a wall-unit air conditioner.

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4
Michael Emery’s answer
Have you factored in the non homestead taxes into your expenses as well as any future pending or proposed assessments you would need to pay on both units?

Have you factored in that your rental unit won't be full 100 percent?

Did you know that rental properties require a higher down payment and do you have enough down payment for two units? Some associations won't allow rentals while some lenders won't lend on buildings with rentals and/or for rental properties.

And have you ever been a landlord and how are you going to find tenants?
0 votes Thank Flag Link Thu Mar 24, 2011
Aviat, there are many variables here. Ultimately it depends on your reason for purchasing in the first place and how long you intend to live in the townhome. It appears that you're asking for investment purposes and are wondering which might bring a better return? Herein lies another variable, what's the market doing? At this point in time you may do well to have two units at low interest rates because many condo's are seeing an increase in value and one may be able to produce income.

Speak with a Realtor who has experience working with investors, they will lay out your options in a more simple and complete way than you can get on Trulia. I've been investing and have been working with investors since 2002. I'm happy to explain in greater detail.

Gail Strom
RE/MAX Results
952.220.4027
gail.strom@results.net
0 votes Thank Flag Link Fri Dec 6, 2013
Best for you confer with CPA for all you tax advantages

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Mar 24, 2011
Both options have their pros and cons. As long as you could keep the other unit rented, or as long as you earn enough to service the debt for both units, then the 2 condo purchase might work out nicely.

Have you considered getting a duplex instead?
0 votes Thank Flag Link Thu Mar 24, 2011
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