Is there any downside to renting out a home that I have a mortgage on for at least break even and then choosing to rent an apartment for myself for cheaper? I’d still get the same amount of equity that I’d get if I were living in the home.

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Assuming all costs break even (maintenance, capex, tax), then no specific downside. If you can ‘live’ with cheaper and have someone else build your equity for you, that’s a good decision.

I’ve been doing the same for years, as I have a large expensive property being paid down for me (minor net profit), but living in a cheap 1 bedroom apartment. It’s my exit plan for when I eventually want a bigger place for my family.

If I hadn’t done that, my $850k house would be $1.4m if I tried purchasing it today. (HCOL)

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Thanks! This type of experience is what I was looking for. If it doesn’t explicitly cost me more, then I’d rather have the freedom to move when I want while still building equity.

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You’re still on the hook for a number of repairs and you have someone living there who most likely has less worry about breaking things than you would, and will want things fixed that you might be willing to live with.

So at breakeven i figure you’re still losing 1-4% a year on maintenance - you should factor that into your rent price.

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How much is interest? If rent is greater than contribution to principal then you’re losing money

It’s best to earn money over the mortgage so you have something in escrow for repairs, upgrades, and non paying tenants. I would compare rentals like yours and find your sweet spot in the market to price yours. Are you prepared to pay rent and mortgage if the tenant doesn’t pay and doesn’t leave? If you rent it out it’s ideal to create a nest egg for it, and yourself, so lower rent for you higher rent for them is super smart jic.

Maintenance is a thing so for sure have vetted contractors for all trades on deck, and know what vendors will go on call for any emergencies. You may be ok, however, if you allow a property manager to manage the property you not only have the freedom to move, your earned income on the property becomes passive income and you just get the check you didn’t have to work for, and a report on your property monthly. Any collections, maintenance, evictions, tenant interactions etc. are all done for you…

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