<prompt> Human: Im looking to move to a new area in the next few months, and want to start getting some equity in a property rather than continuing to pay rent to someone else. I would currently be able to put 10 down on a 3 br 3 ba condo, and I make 65k a year. Is it crazy to buy a condo with the intent to rent out the other two bedrooms? Do you have any tipstricksthings you wish you knew when you were buying your first home?Edit: This new area is the city I went to college in so I am very familiar with the area. However, it will be a new job with a new company so there is still some uncertainty there.Assistant: I usually suggest people rent for a year when moving to a new area - you get time to get a feel for the place and your new job. Renting your rooms is fine, but dont buy a place you cant afford without room mates. You may not like landlording, and they may not be able to pay.Human: This new area is actually the city I went to college in. Its not where I currently live so I described it as a new area, but maybe I should have been more clear. So I know that I will like the area, but no guarantee with the job.To your second point, I know that I can handle the payments on a 30yr mortgage myself with or without roommates, but for a 15yr mortgage roommates would definitely be a big help. Do you think it would be best to go for the 30yr mortgage just to be on the safe side even knowing I will end up paying a lot more in interest in the long run? I could always refinance it ifwhen my financial situation changes and I am more able to support a 15yr mortgage on my own?  <response>: I purchased a house shortly after finishing college, with the intention of renting out the extra rooms. It was the best financial decision I ever made, but I made sure I could afford the mortgage independent of having renters, in case I decided I didnt want to rent any longer, or if I had issues finding good tenantsgetting paid by tenants.I started with a 30yr mortgage and refinanced to a 20 year about a year and a half later to reduce the rate. I would definitely recommend starting out with the 30 year and refinancing later on if it still makes sense - remember you can always pay extra to reduce your overall interest expense. You dont want to get yourself into a situation where you depend on other people to be able to afford your payment. As for renting out extra rooms, make sure you have your tenants sign a lease, even if its month-to-month, so expectations are clear and to protect yourself in case of issues with payment or damages. I always run a backgroundcredit check on new tenants and collect a month of rent for the deposit not so much for damages since I live with them and can monitor their treatment of my property, but to ensure they can afford the payment and to protect myself if they break their lease.In my experience, tenants dont always take our agreements as seriously as they would with a management company, because Im an independent landlord and a kind and friendly person. Because of this, I always make sure I have new tenants sign a lease that I can fall back on when they expect special treatment for breaking a lease, paying rent on time, etc. If it wasnt for my attitude that Im running a business and cant let emotions get in the way, Id have been taken advantage of many times by tenants.There are a lot of great tax benefits when you rent out a portion of your home, so if youre not tax savvy, you might want to consider hiring a CPA to help you maximize your deductions. Be sure to keep track of every expense related to the house to help tax time go smoothly. 