Originally Posted by Diapositivo
1) all of this is conditional upon having a reasonably large down payment
2) although 10% is an entirely reasonable down payment for one's primary residence, 35% is more likely considered the minimum required for the down payment on a rental property
3) I do not have a reasonable down payment for a rental property that I would consider living in (there is a subtlety here which is attributable to the California property tax code - the details of which I will spare you at this time).
You have observed that the housing market is distorted. It is true. There are significant tax advantages pertaining to interest paid on the mortgage for the home you live in...However, that is not generally the case for the house you rent to another.
Last edited by BradS; 01-07-2013 at 04:42 PM. Click to view previous post history.
Reason: make thoughts a little more concise.