I take your point, but in Option 3, yes you've benefitted from the accumulated wealth in the house, and benefit from those investments, but you no longer contribute to literal physical ownership of living space you don't need.
And wait a minute why is it a good thing if I take option 1 but I limit the family size I'm willing to rent to
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Doesn't the bigger family need the house more? Aren't I screwing the family over just as much if I say "Nah I'm only renting one room to one of my buddies" as if I don't rent it at all
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Sorry, I meant under!
End of conversation
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