A real estate property has always considered the best investment, whether you buy it to live in, or to rent out. It is better to buy than to rent in most cases. If your job is temporary or your relocations are less than two years then purchase real estate may not be a good investment unless you buy a property below market and fix it up for sale or lease out the property using a management company.

In the United States, some mortgage companies made it possible for First Time Homebuyers to get loans to buy 4 Unit Buildings and still get their first time home buyer’s credit. The multifamily building of 4 units or less classifies as residential buildings. The mortgage company requires that the First-timer buyer occupy one of the Units. The lender will then consider the rent from the other units as the First-timer’s income to aid in qualification for the initial purchase. This opportunity makes it possible in most cases, to live almost expense free. However, it does make you responsible for the building management in that you have to respond to issues that may arise with tenants; the benefits of owning the building far out way the problems of the small scale management of the building.

Joe is a First-Timer that bought a 3 unit building for $499,000 in Baltimore, Maryland. Two units rents for $1,300.00 each; the total combined rent is $2,600. The mortgage that includes Principal, Interest, Taxes, and Insurance came to around $2,772.10; the difference is $172.10. Thus, Joe is living in the other unit free from mortgage expense while the property over time increases in equity. Also, when he consults an account most likely, he may have some tax benefits.