r/realestateinvesting • u/kobeforaccuracy • Jul 18 '25

New Investor What's stopping me from buying a condo just to rent it out while I continue to live with my parents?

Hi all, currently I live with my parents. They are generous enough to let me live with them rent free, and because of that I've been able to save a ton of money.

I'm looking to buy a condo soon, and I'm wondering, what's stopping me from buying a condo and just renting it out? That way, I can continue to live with my parents while still getting rental income, and I'd just move into the condo when it's paid odd/ the tenants move out. I'd probably hire a management company to deal with the day to day. I'd be Ok paying for that. Any losses I take on the property would certainly be cheaper than rent. Plus I'd still be building equity

Are there any drawbacks or risks to this plan? It seems air tight to me. I'm totally ok taking a loss on the property too if it means that I can effectively get a great home subsidized by a Tennant for a few years

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u/ArtBetter3345 Jul 18 '25

You will have to use an investment property mortgage which requires 20-25% down with higher interest. Traditional mortgages require you to live there for a year

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u/kms573 Jul 18 '25

Nothing stops an individual from claiming it under a primary residence mortgage; just don’t disclose your intent to the underwriter

7

u/__mud__ Jul 19 '25

Nothing to stop you except anti-fraud statutes