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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30905
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am buying a house with my father and I as co-owners. I will

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I am buying a house with my father and I as co-owners. I will be living there and he will not. A mortgage broker has told us to buy this as a rental property. Why would we want to do that? What are the benefits/pitfalls of buying this as a rental property rather than just a residence?

I don't know of any advantages of doing this. First, you'll have to pay extra insurance for a rental, your taxes will be about 30% higher because you're not filing a homestead exemption on the property, and the bank will likely require more to approve the loan.


If you're going to live there, my suggestion is to by it as if it were a traditional residence.


Maybe your realtor has a grand reason that buying it as a rental makes more sense, but I am not aware of it.

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