I've come to understand that owning a townhome/duplex and living in it while others are also renting from you isn't as sexy as it may seem at first glance. Over and over again I get this from friends I trust.
However, I'm spending $400+ on renting from someone else every month anyway. Say I would net-loss $50 on a property that I would both rent to others and live in. Then why don't I just purchase the rental property, and save $350 a month by not paying rent to someone else and building equity at the same time? This is the situation I have computed after talking with others who own, live in, and rent out the same property.
The only idea I have is that the down payment for the property could have been better spent on another type of investment that would make more money long term.
Can someone enlighten me?