No. of Recommendations: 2
It think it comes down to the family's values and a judgement call.

And one which you do not have to justify!

Still, perhaps it would be better to send her off to rent for a while and see if she wants to live in Phoenix before making a real estate investment.

This is a fabulous idea. We had to relocate for work to a place that looked just great on paper, but I absolutely hated. Fortunately we rented rather than purchased Moving to a new area without knowing the different neighborhoods can land you in one that does not suit your personality. Yes, it is a pain to move twice, but it's worse buying the wrong place.

On the other hand, you do have the fall back position of simply renting it out. Have you run the numbers to see if the return is decent? I am a big fan of the 10 year Real Estate Investment Analysis spreadsheet you can download here: Third one down. As a perfect example of do as I say not as I do, we recently used this spreadsheet to analyze the purchase of a second home in a city near our rural retirement retreat that looked fabulous on paper. We had spent about 6 months racing to check out many homes in several neighborhoods, but had never lived there. With a dog in tow and a spouse still working a 6 hour drive away, it was hard to do an extended visit as well. But the numbers of the house as a fully managed long term rental looked very good as a fall back position if we wound up hating the city, and it was even pre-tax cash flow positive year one. It also had an excellent market for a short term vacation rental and would make considerably more money that way than as a long term rental. So we bought it without having lived here, and happily absolutely love it.

None the less I love the flexibility of changing our mind if we want to move somewhere else, knowing that this place will not only pay for itself but give us income. Part of the rush for us was the short term remaining nature of having an income to qualify for a mortgage. It is always easier to get a mortgage if you have documentable income.

There are many ways to look at this.

Good luck with your analysis!

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.