I currently live with my parents, but I'm in the process of trying to buy a tiny studio. The studio is located walking distance from my workplace, as well as from grocery stores, department stores, restaurants, and public transportation. In fact, it was what I learned from MMM that drew me to this place. :) Because of the location, I think it would make a good rental unit as well.
My question is, assuming I do purchase this studio successfully and get a 30 year mortgage, should I rent it out while continuing to live with my parents? If so, should I try to pay my mortgage down as quickly as possible, or should I make the regular mortgage payment and invest any other savings?
Also, I made a mistake by getting a new credit card after my loan pre-qualification letter, but before applying for the actual mortgage. (I had no idea that I would end up in a bidding war and that my offer would be accepted so quickly.) Do I have to inform the mortgage company of this, or is it something they will discover on their own once they begin evaluating me for the actual mortgage?
Additional background: I'm in my mid (late?) twenties. My parents don't seem to mind me continuing to live with them. Their culture is very accepting of adult children still living at home. I've also helped them with the down payment on our current house when we bought it, and so in exchange, am not currently paying rent. I'm expecting my parents to retire within the next several years, and with that, sell their house because none of us will be able to afford the mortgage payments at that point. I currently live about 35 minutes away from work, which is a hassle at times. I want to retire early, but that will be kind of hard if I have to move out and start making rent or mortgage payments.