How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31765
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Real Estate Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I am buying a house with my father and I as co-owners. I will

This answer was rated:

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.

Roger and 3 other Real Estate Law Specialists are ready to help you