<prompt> Human: Im thinking of buying an apartment in a place where I live, because Id like to keep money that Im currently throwing out of the window in form of a rent. However, I live here because of work, so Im not sure how long Im going to stay here. My plan is to buy a bigger apartment and rent out rooms that I wont personally need. This and the rent that Im paying now will pay for the mortgage. If I move out of here, Id keep the apartment, and Id find someone to rent the room after me. Thus itd cost me nothing to keep it and the renters would pay for the mortgage. I dont think there will ever be a problem to find renters, since this part of the country is quite attractive. As an initial downpayment Id use all my savings as Im not expecting any big purchases any time soon. What do you think, is it a good idea? If not, why? I dont see any risks, but its quite a big commitment.  <response>: Renting is not throwing your money out the window. When you rent, youre paying for many items that as an owner you would be responsible for, including property maintenance, appliance maintenance and replacement, and property taxes, among other things. You might want to try to the New York Times Rent Vs. Buy Calculator to get a better idea of the true costs of buying versus renting.Additionally, if you go through a realtor there are fees involved, usually around 6 of the propertys value. Of course, a propertys value can increase or decrease, and many of the variables are well outside your control.If you want to use most of your savings to purchase an apartment, I question whether you even have the financial means to pursue this in the first place. Think about buying an apartment as a business venture instead of as a place to live: would you spend all your savings on a single unproven business? Whereas you dont see any risks, I can foresee the following risks involved: - If you rent to a deadbeat tenant, youre likely going to have a hard time getting him or her legally evicted; most states renters laws are written heavily in favor of the renter, and any legal missteps you make can cost you a lot of money. Plus, a security deposit may not be enough to undo the damage a truly destructive tenant can do. - If you spend all of your savings on a down payment, then lose your job, and then cannot rent out all the space or otherwise make up the mortgage payment in rent, what is your plan? - If you do happen to become an absentee landlord, how much of a cut can you budget for the management company? If youre planning on renting out all the rooms to make up the mortgage payment, what happens when you move out and the management company cant find enough tenants? - Are you prepared to take the risk that, if you do end up deciding to sell the apartment after moving out, that the value of the apartment is less than what you paid for it? 