I want to buy a house and rent it out for a year or two and then move in. What is the best financing method?

I own a townhouse that I rent out and live in a house that I rent. I will sell the townhouse to have a down payment to buy the new house.
I am not looking for a particular lender. I want to know what type of financing is best for my situation. Owner occupied loans require moving in much sooner than a year after purchase. It seems that investor financing would be paying too much of a premium considering it would only actually be rented for 2 years at most.


If you are planning to own a new house for 7 years or more, get a fixed rate. However, if you are planning to keep the property for less than five years, get interest only for 5 years.

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4 Responses to “I want to buy a house and rent it out for a year or two and then move in. What is the best financing method?”

  1. mns0869 Says:
    December 12th, 2006 at 8:06 pm

    Don't buy now!! That would be crazy!
    References :

  2. robert w Says:
    December 12th, 2006 at 8:09 pm

    best financing now is Cash and a better understanding of the cash you'll lose in up coming years if you are not lucky.
    References :
    a foreclosuer server with plenty of work

  3. Morpheous Says:
    December 12th, 2006 at 8:25 pm

    If you are planning to own a new house for 7 years or more, get a fixed rate. However, if you are planning to keep the property for less than five years, get interest only for 5 years.
    References :

  4. Alfretz T Says:
    December 12th, 2006 at 8:33 pm

    I urge you to study the relevant real estate cycle first before you buy. It may prevent you from getting into a bind. Good luck!
    References :

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