The Pros and Cons of Buying an Investment Property While Still Renting

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If you’re looking for a new home to rent or buy, it’s best not to make any rash decisions. That said, if you have a financial windfall from an investment property and need some cash now, renting the place out might be the only choice. Here are some pros and cons of buying your rental while still keeping it as a rental property in 2018.

The “pros and cons of owning rental property” is a question that has many different answers. The pros include being able to sell your investment property when you want, while the cons include having to pay for repairs, upkeep, and taxes.

People are finding innovative methods to profit on the many inexpensive properties that are becoming available in the present property market. You could be considering buying an investment property to rent out while you continue to live in apartments, but are you sure it’s the best decision for you? Consider the advantages and disadvantages of purchasing an investment property vs living in your own home to choose your next actions and reach the best conclusion.

In Support of Owning Your Own Home…

1. Grants and Tax Credits for Owners

You could be qualified for sizable grants, tax breaks, or other assistance programs as a first-time homeowner to help you purchase your first house. These incentives and programs, which are often accessible via both local and state authorities, might significantly impact your financial capacity to immediately get the house you’ve always desired.

2. Avoid Renting’s Pitfalls

It becomes yours once you move into your own place. You may now decorate and modify your home as you wish without worrying about getting your landlord’s permission before making any changes. Additionally, you are certain that your money is being used to purchase a property that will continue to provide benefits to you even after you pay off your initial mortgage or decide it’s time to downsize and sell.

3. Owning a home gives you a sense of security.

You know how unsettling it might feel to suddenly not know where you’ll live if you’ve ever worried that your landlord could ask you to leave for repairs or another reason. You won’t experience that horror after you own a home. You may rest easy knowing that nobody can order you to leave your house and that you always know where your possessions are.

4. If you sell, there is no capital gains tax.

Capital gains tax, which might reduce your earnings if you sell an investment property, is not due when you sell your personal dwelling.

5. No Additional Fees for Upkeep of a Rental Property

You may believe that the rental property would be a fantastic source of income, but it also has expenses of its own since you must do annual maintenance. When you live in your own house, there aren’t as many obligations placed on you as a landlord, therefore the pressure is less.

For Purchasing an Investment Property…

1. Additional Tax Exemptions

Due to the connection between your investment property and your income, you are able to deduct mortgage interest payments as well as investments you make in the property for upgrades. The number of tax deductions and write-offs that are available when you live on your own will probably be lower.

2. If you reside there, it is not profitable.

It is unlikely to ever be a source of revenue rather than a place to put your money unless you rent out a room while living there. The outcome of an investment property might change.

3. You Can Achieve Your Growth Potential Without Sacrificing Your Lifestyle

You could be better off buying it as an investment if you’re in a great apartment in the city but can only afford a house in the suburbs. You may see your home’s value increase from your vantage point right in the middle of downtown if you do your homework to purchase in an area that is growing.

4. Gearing for a Rise in Cash Flow

Your home may be a long-term asset that will continue to provide income far into the future if you stack the deck favorably by selecting a lower-cost rental for yourself and gearing your rental revenue in the positive. You’re set up for financial independence if you can pay your own rent in the process.

5. Faster Equity Gain

If your rental income exceeds your mortgage payment, you may utilize the difference to accelerate mortgage repayment and increase your equity. If you decide to extend your rental portfolio, you may be able to witness the mortgage’s completion sooner rather than later. Imagine having just an income and no debts. Then, you’ll be in a good position!

Investment property could be the solution if you’ve reached a stage in your financial knowledge where you’re asking how to begin investing while still renting. When setting up the new house for your tenants or if you decide to move in yourself, be sure you only work with the finest moving companies!


The “benefits of owning rental property” is a question that has been asked many times. The pros and cons of buying an investment property while still renting are listed in this blog post.

Related Tags

  • disadvantages of owning rental property
  • can i buy a house and rent it out immediately
  • the truth about owning rental property
  • tax benefits of owning rental property
  • risks of renting a house
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Christina Brown
Christina Brown

Christina Brown is a professional moving guide specialist. She is a self-proclaimed expert in moving and has been writing for the last 5 years about different topics related to it. Her articles are informative, helpful, and filled with opinionated points of view that make you reevaluate how you think about relocating. If you face any problem don't hesitate to contact her at

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