Financing in San Diego>Question Details

Dmoss, Home Buyer in San Diego, CA

Tri Plex vs Detached - live in one or rent all ?

Asked by Dmoss, San Diego, CA Fri Oct 31, 2008

We are considering two options and want to know which would be most beneficial with regards to the interest rates, property taxes and our ability to use the deductions on our tax return :

1) Live in one, rent out the other two. 20% down, balance borrowed in a 30 yr fixed conforming loan.

2) Buying it strictly as an investment property. 20% down, balance borrowed in a 30 yr fixed conforming loan.

Thanks in advance !

Help the community by answering this question:


Hello DMoss,

You are on the right track. From the information you provided it sounds like your focused more on the investment aspects of the purchase. I like it. As an investor, your goal should be to maximize your return on investment (ROI). Jim is steering you in right direction. Buy it as an owner occupied tri-plex and rent out the other two. Why? Lower down payment and lower interest rate will offset the depreciation benefits. I can elaborate more on some of the other benefits offline.

I have a background in finance and an MBA from San Diego State. I work with lots of investors to help them find the best properties, negotiate the best deals, and provide them with superior financial analyses. My fees are paid through the real estate commissions when you make a purchase.

Reach out to me if you would like some help.

Nick Rhea, MBA, Broker
Bombora Investments, Inc.
1 vote Thank Flag Link Fri Oct 31, 2008

I created a great spread sheet that answers your exact question. Its a great tool to play with numbers and see what they are "actually" are.

Send me an email from my site and I can send it or go over it with you...
Web Reference:
1 vote Thank Flag Link Fri Oct 31, 2008
If you can buy it as a owner occupied your rate and payment would be much better, you can live there a year, then rent the last unit out, getting the best of both worlds.
Web Reference:
1 vote Thank Flag Link Fri Oct 31, 2008
Specializing In; income properties thier are many advantages in buying investment properties. I also manage /multi-units and in todays Real Estate Market thier is a huge need of homes to be rented.
My references are avialable upon request.
Ruben Sanchez: License REALTOR-BROKER 619.251-5093
Web Reference: http://WWW.RUBENREALTY.COM
0 votes Thank Flag Link Sun Nov 2, 2008
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