Thinking about buying a condo for our daughter. Is this considered an investment property or second home? Not a primary residence for us, but a primary residence for her.

What kind of down payment requirements for this type of purchase?

Easiest option is put her on title and loan. She needs a credit score though

You should be able to buy it as a second home since you have a family member living on the property.

The advantage to calling it a second home is lower down payment requirements and better interest rate.

Now, if you want that advantage AND do great as an investment, spend a little more and get a duplex. Your cash flow will be significantly better than your condo and it might just turn you into a real estate wealth builder like someone I know! Cheers.

Good advice. The area we are shopping in lacks multi-family inventory, unfortunately.

RGRAg1/75 said:

---

Thinking about buying a condo for our daughter. Is this considered an investment property or second home? Not a primary residence for us, but a primary residence for her.

What kind of down payment requirements for this type of purchase?

---

If you are buying in Bryan/College Station I would love to help.

I'd be very careful declaring a family member living there. That is not the definition of 'second home' or better, defined as a 'vacation home'. Especially if any rooms are also rented. Then it's investment and much worse financing. We are talking about the Feds here.

I have clients buy seconds in B/CS regularly. They used them for football and sports, 12th man meetings, and kids too. But that is their intent.

I worked a deal with my parents to buy an Austin condo in '97 while I went to grad school. I got reasonable rent for three years and their condo went from $50k to $225k.

It's not in B/CS. No intent to sublease, or for her to have roommates, frankly. We've narrowed in on a 2/1, where the second room would be set up as an office for her to work in.