Buy the house I want to live in, or the house that rents best?
I'm one saved-up down payment away from starting this, and the first real fork is what kind of house to buy. Everything I've read says the whole point is that I get owner-occupant financing, so the property has to be somewhere I'll actually sleep for the occupancy year. My lender said the requirement is usually around twelve months and I need to get the exact language in writing before I sign anything, which I plan to do.
But the house I'd pick to live in for a year and the house I'd pick as a rental are not the same house. The one I like is a 3 bed on a quiet street with a big yard, near nothing. Rents there are soft because the tenants who want that area mostly buy. The one that rents in about a week is a small 2 bed close to the hospital and the bus line, and I would be bored out of my mind in it.
The case for picking for myself: I have to live there, and a year is long enough that misery is a real cost. The case for picking for the tenant: I only get one shot at owner-occupant terms per rung, and if it doesn't rent well after I leave, I've spent that shot on a house I have to sell.
How did the people already doing this decide the first one?
For the first rung, which house do you buy?
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