There are three reasons for this.
1. Buying a home is an emotional decision, not just a practical one. While you can do all the analysis we suggest when looking for a foreclosed home to buy, you are still going to have opinions on the layout of the house, the architectural style, the neighborhood, and even the appliances contained in the house. This can cause you to throw out your financial and neighborhood analyses for emotional reasons and end up with a deal that is not as good.
2. When you purchase a home to live in, you tend to live with a bad decision longer because you do not want to have to pack up everything and move again. It makes you a lot more cautious when you are looking for a home to purchase. With an investment property, on the other hand, it’s a lot easier to sell the house to someone else and move on to a new project.
3. The number of acceptable houses available is smaller when you are looking for a home for use as your personal residence. You need to find a house in the right school system, a house with the best resale value over time, businesses nearby, like a grocery store or post office, and a house near your office so your commute isn’t too long. When you purchase a property to sell, these things do not matter.