A couple in their mid-30s are struggling to find an affordable house before their first baby is due in five months. That's an arduous chore because they live in an extremely high-cost area.

To meet the challenge, they're shopping rental properties -- places currently (or formerly) occupied by tenants. To land a discount, they're hoping to locate a home that needs only superficial fixes and upgrades -- work the husband, a contractor, can do himself in his spare time.

Considering their income limits, the couple in this true story have latched onto a potentially good buying strategy, says Ashley Richardson, a veteran real estate agent affiliated with the Council of Residential Specialists (crs.com).

"It's true that when you buy a rental, you're always rolling the dice to some extent because there can be hidden problems. ... But if you get a solid home inspection and can tackle many of the issues yourself without hiring out, you can buy yourself lots of sweat equity with a minimum of risk," she says.

Sid Davis, a long-time real estate broker and author of "A Survival Guide for Buying a Home," estimates that those who purchase a well-chosen rental home can save as much as 30 percent off the market value of a similar property in better showing condition.

Here are a few pointers for cash-tight buyers pondering a rental property:

-- Try to plan your first visit when the renters are away.

Those living in a rental unit are typically -- though not universally -- unhappy about the idea that their landlord is making them move.

"Lots of tenants get very angry in this situation. Even if they're not mad, they're not going to go out of their way to clean the house for a showing or to say nice things about it," Davis says.

What's more, some renters make pejorative observations about the house -- hyping minor issues and occasionally even making up problems that don't exist to discourage a sale.

Davis recommends buyers try to schedule their first visit to see a rental property when the tenants are absent. That way you can more effectively examine the place.

"When you're first looking at a place, it's a bad idea to let tenants follow you around and distract you with their comments," Davis says.

Still, if you're interested in making a second visit to the property, he says you might consider doing this when the tenants are present and can expand on any problems you've already discovered.

-- Make sure you obtain an in-depth home inspection.

Although many rental properties are overseen by professional management firms, they rarely receive the same level of attention as owner-occupied properties. That's why it's critical to make any offer contingent on a satisfactory home inspection.

To locate a highly qualified home inspector, Davis recommends you ask your agent for the names of at least 10 candidates. Then interview three by phone to determine the best one. Another source for referrals is the American Society of Home Inspectors (www.homeinspector.org).

Avoid choosing an inspector who's also in the home improvement business.

"That represents a major conflict of interest --especially if the guy presses you to hire him for repairs," Davis says.

-- Obtain cost estimates for all the repairs you'll need.

Davis once owned six rental houses. This taught him that tenants often fail to tell their landlord about problems unless they become serious.

"Perhaps the dishwasher has malfunctioned for many months. But the landlord never heard about the problem until a home inspector finds that the dishwasher leaks and must be replaced, along with the subflooring beneath," he says.

Davis says the prospective buyers of a rental property -- or any home, for that matter -- should determine in advance how much needed repairs will cost. He recommends they get estimates for all the repairs on the inspector's list before finalizing their bid. Then they should make sure these expenses are factored into the price they negotiate.

-- Place location at the top of your list.

In many neighborhoods where the real estate recovery is still robust, buyers continue to outnumber sellers. Even so, as Richardson notes, very few purchasers prowling the market are willing to consider a rental.

"These days, buyers only want a house in pristine condition -- one that's been babied by its owners. Very few people will take a 'fixer' because of all the hassles that might bring. That means you'll have fewer rivals in pursuit of a good deal," she says.

You could get an even more favorable deal if you find a house with only superficial problems in an excellent neighborhood, like one with manicured yards and top-rated neighborhood schools.

"As with any real estate purchase, location should trump every other priority when making your choice," Richardson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

The U.S. economy is still expanding, and more people have jobs. But relatively fewer young adults who aspire to homeownership are now reaching that goal, according to a newly released survey from the National Association of Realtors.

Lawrence Yun, the association's chief economist, points to high levels of personal debt, including student loans, as the main culprit.

"It's likely some younger households ... can't save for an adequate down payment or have decided to delay buying until their debt is at more comfortable levels," Yun says.

On top of that, the government's latest consumer price index shows that rents rose 3.7 percent during the past 12 months. But in some popular urban neighborhoods, rents are now increasing at double-digit levels, according to the real estate website Zillow.

But those rising prices are also spurring young people into the home ownership market.

"Many people want to get into homeownership before they're priced out of the market," says Charles Carroll, a financial planner affiliated with the Garrett Planning Network.

Unless they receive financial help from family members, he says, many young wannabe buyers have to tighten their belts to generate sufficient savings to meet the challenge.

Celia Brugge, a certified financial planner, says many Americans are still less spendthrift than they were before the last recession. But they continue to slip easily into temptation when it comes to discretionary purchases.

She urges anyone trying to embark on a major savings program to first go through what she calls "the boot camp period."

During this initial phase, she suggests you do an inventory of where your money has gone during a recent three-to-12-month period. You can do this by reviewing the entries on your checking or credit card statements and then by using paper and pencil to summarize your outlays.

Another handy tool for tracking spending is available through the Mint website. Through it's free software, Mint lets you expedite the budgeting process by easily identifying and organizing your transactions.

Once you know where your money is going, it's time to start making cuts in low-priority categories. To help exercise willpower against out-of-plan expenditures, Brugge urges would-be homebuyers to give up shopping as a recreational activity.

In addition, Brugge says many would-be homebuyers can find savings by cutting off their cable TV and instead tuning into free TV options now available through the Internet.

To stay on track and accountable for their spending, Brugge advises couples to set regular times -- as often as weekly -- to allocate 15 minutes or so reporting to each other on their recent spending.

"It's a huge problem when couples don't tell each other what they're spending. It sabotages trust," Brugge says.

Here are a few more pointers for those scrambling to save a down payment:

-- Ponder your commuting costs and how they could change.

Gerri Detweiler, a personal finance expert and author, says many people take their need for a late-model luxury car as a given. But to save for a home of your own, you may need to downscale your expectations in this category.

In the ideal world, those with a big savings goal will consider selling a vehicle they own and commuting by rail or bus until they reach their savings goal, she says. Another option is to carpool with a spouse or coworker.

-- Attempt to cut your insurance costs.

Insurance brokers and salespeople can be persuasive when encouraging clients to maximize their coverage. But Detweiler says would-be homebuyers should examine their spending in this domain. For instance, you might find a way to reduce the cost of your auto insurance policy without compromising your core coverage.

"Shop around for insurance and also look into how much you could save by increasing your deductibles," she says.

-- Keep your eye on the prize of homeownership.

Researchers in the field of behavioral economics say people save more if they have a concrete objective in mind. But how can you make your home-buying goal more tangible?

Detweiler says one approach is to visit a mortgage lender to determine how much you could afford to spend for a property and how large a down payment you'll need.

"Since the economic downturn, finding a no-money-down mortgage has gotten harder and harder," she says.

Once you've established your borrowing ceiling, Detweiler recommends you embark on a very limited property search by attending a few open houses in the neighborhood you've targeted.

"Getting a quick overview of the market can really motivate you to save for your house," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

A woman in her late 50s was extremely distraught after her husband left her on their 25th anniversary. In the wake of the breakup, she become sole owner of their handsome Tudor house in a posh Minneapolis suburb. But instead of holding onto the appreciating asset, she immediately sold it in "as is" condition for a sacrificial price -- a move she soon came to regret.

As this true story illustrates, making hasty financial decisions after a relationship breakup can be a poor idea. Whether a newly single mom like the Minneapolis homemaker should hang onto a property or sell depends on many factors. But financial advisers urge those in her position to wait for emotional calm before making any major move.

"There are many moving parts to this decision, so definitely take it seriously," says Bojana Rovchanin, a chartered financial analyst who specializes in helping clients navigating through divorce.

Of course, not everyone who owns a home post-divorce can afford to take a lengthy time pondering the pros and cons of selling. For financial reasons they must liquidate promptly. But those with options are well advised to reason their way through this complex matter and spend at least one year charting their best course of action.

Connie Cusick, a life coach and small business consultant, says many newly divorced women choose to hold onto the big family house because it feels safe. Yet ultimately, moving helps them redefine and expand their lives in positive ways.

After selling the family home, Cusick says many women of middle age feel liberated to explore interests that have been dormant for years.

Mark Nash, a longtime real estate broker and author of "1001 Tips for Buying and Selling a Home," tells the true story of his mother, a long-time homemaker who became single soon after all three of her children left home for college.

"Only after she sold our family's 2,200-square-foot house and bought another place half that size did she have the freedom to discover a lifestyle beyond her homemaker role. She became a competitive bridge player," Nash says.

Though selling the family home is the best choice for many single women who've become empty nesters, it's not the right plan for all.

"Occasionally, someone who sells and moves feels they've gone through a big psychological setback. They feel like they've lost their sense of place and never seem to recover from that loss," Nash says.

Here are a few pointers for newly single women debating whether to sell a family home:

-- First wrestle with the financial issues around your decision.

Nash recommends that anyone facing a major money decision such as whether to sell a house should consult a trusted financial planner or accountant before going forward.

"Everyone needs a reality check on their money. You need an impartial observer to help you make a careful assessment of your whole financial situation and analyze your alternatives," Nash says.

Before you visit your adviser's office, Nash encourages you to spend time with your checkbook and credit card statements to determine exactly how much your house is costing you.

"Many people greatly underestimate what they're spending on home upkeep, household services and furnishings," Nash says.

-- Look at the big picture before considering any major housing move.

Often, people see their real estate choices in isolation from the larger issues of their lives, says Michael Knight, a financial planner affiliated with the Garrett Planning Network. But he says all major financial decisions should be made with your lifestyle preferences in mind.

Assuming you're one of those fortunate enough to have financial options, to whom should you turn to help formulate your plans? Sometimes, a real estate agent who's willing to listen to your story, (and won't push you to sell), is a better adviser than a close friend or family member, Nash says.

"The people closest to you aren't always the most objective. If you don't feel comfortable talking to a real estate agent, consider talking through your personal plans with a therapist or life coach," he says.

-- Proceed gradually with your action plan.

Nash, like many veterans of the real estate business, knows it can be a mistake to hurry into a home sale soon after a life-changing event. For many women, this is an especially traumatic period if it occurs around the time when their children have left the nest for college or other endeavors.

"When the last child leaves home, some mothers go through a personal crisis that can cloud their judgment," Nash says.

He advises those going through any major life transition to wait as long as it takes to make a decision that they know they will be comfortable with.

"If time allows, delay any big housing move until your gut and pocketbook tell you the time is absolutely right," Nash says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)