Buying house, interest only loan the way to go?

[Shoe]

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I figured the transaction costs would be too high to make this worth doing but he does have the rental income. I'd still pass though.

Also renting is not always throwing money away. I use to own but have been renting for 8 years. Looking at buying now but the more I do the math the more I realize renting is much better for me then owning.

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Renting is much better for me at the moment as well, mainly because I currently have a roommate so that cuts my rent and bills in half. I also have several friends who own who are willing to rent me a room cheaper than my current rent payment.

If I were to buy, just the property taxes + insurance + mortgage interest (even after tax deductions) + a low estimate on maintenance would be about twice as much as I am currently paying in rent.

Instead of buying I am going to continue to rent. Each month I invest into the stock market what would have gone towards my mortgage. So far, I my stock gains have far exceeded any increase (or possible decrease) in the average's home value in my area.

I would suggest finding a renting vs. owning calculator to help determine what makes the most sense for you.