Buy to move or income property?

bhil923

Here is a little background... I am an early 30's, first time home buyer, I am not married, and do not have kids. I am dating a woman with a couple kids who could potentially move into my new home in just under a year. I have a steady job and, according to the bank, can afford a modest home up to 250k (all in). I currently rent at $300/month everything included (this is not with my parents, and I get along very well with the home owners. They are trying to get pregnant and when they do I will have 6-7 months to move). My credit rating is listed as excellent (800+). I have $40k for a down payment, which doesn't really hit the 20% mark on houses I am looking at, so PMI will probably be involved. I am, also, very handy and can do 90% of the work myself, pretty much everything short of tile roofing, and major HVAC work. I am in South Florida (Broward, Palm Beach County area).

With that being said I am looking into buying my first home, most homes I come across in my area are either too high of price, too small, in a sketchy area, or a have longer drive to work.

I have narrowed my initial decision down to four options:
1) Buy a house that is further away and be happy with the house, but have a longer drive to work (45min-1hr15min depending on the day, vs my average of 20min-30min now, these also tend to be priced closer to 200k for what I would buy)
2) Buy a house closer to work, in need of repair that isn't really what I want but sell in a few years to buy what I would really like
3) Buy a property to be solely used as an income property and in a few years buy the house I would really like.
or
4) Just save up until I can buy the house I would like that isn't too far or when the homeowners become pregnant

I know market trends will definitely effect all decisions here, but I wanted to get some insight on what people thought. It does look like the real estate market here is on an upturn. My biggest concern is, financially, what would make the most sense. I appreciate your input.

bhil923

I did just realize this is a UK forum, and I am in the US, but I hope the ideas will translate well. Thank you again.