With so many different ways to invest in real estate, you may not have considered living in your rental property until now. We’re here to determine whether that’s a good idea by looking at the benefits of living in your investment property.
Better Borrowing Options
If you’re hoping to find better interest rates and lower down payments, the owner-occupied route may be for you. Several loans are available to owner-occupants that aren’t on the table for real estate investors. However, remember that saying you’re going to live on the property and not following through constitutes mortgage fraud and could incur significant fines as well as jail time.
Easier Property Management
It’s no secret that property management is easier when you’re on the property. In addition, because of local housing standards and HUD laws, the unit you will be occupying will very similarly reflect the housing of your other properties, especially if you live in the same zone.
This will give you an inside eye as a landlord and be able to fix problems before they arise, as it’s very likely you will experience similar issues as your tenants. If not, at the very least, you won’t have to drive hours away to tackle any problems that arise.
One Less Mortgage
Living in your investment property means you don’t need to bother with a second mortgage for a home of your own. That means you can enjoy significant savings and one less headache! Depending on the investment property, that may even grant you access to amenities you wouldn’t find in a home you’d buy for yourself.
Note: This article is in reference to single-family units. You can’t convert any rental into a space that you and your tenants can live in. If your property is zoned for single-family use, renting out a portion of the property is illegal.
Whether you live on your property or not, investing in real estate is a great idea. It allows you to diversify your portfolio without starting a second career! So if you’re looking for your first investment property in Nashville, TN, contact us—we’re happy to help.
Now that you know the benefits of living in your investment property, you can decide for yourself whether it’s the right move for you!