Found this good article: http://www.aafp.org/fpm/20040900/27bigi.html Stop renting Annette M. Chavez, MD Carillon Family Practice, Kettering, Ohio Most people don't rent their houses for their whole lives, so why should physicians lease office space for 40 years? I was warned not to do it by the administrator of my former group. I was told that I could invest my money in the stock market with greater financial return. I was also told that medical buildings are hard to maintain and sell. But I knew I would spend the rest of my life in Dayton and did not want to lease office space until I retired. I calculated that my four-physician group had spent $450,000 on rent during the seven years we were together and extrapolated future lease costs of $2 million for the remainder of my career if we stayed in the same office. So I started my own practice in a brand new building that I own. Because of a covenant not to compete with my former group, I had to move over eight miles away. I drove around my target area until I found a derelict vacant lot where a restaurant had been torn down. I paid $87,000 for 1.3 acres on a hill, engaged an architect and a builder, and secured a construction loan and a line of credit for my operating expenses. My husband and I put down about $90,000 of our own money (saved over the years by living below our means). We did our own landscaping and outfitted our office with equipment obtained at auctions and from hospital surplus. I sewed my own exam room curtains and re-covered my exam room chairs ($10 each). My husband is my office manager and does all the building maintenance, which is minimal as the building is new. I now practice in a beautiful new office with the patient flow and staff logistics exactly as I had planned. The area in which I constructed my office has turned around, with new retail shops, housing and physician offices locating in this first-tier suburb of Dayton. We now owe $480,000 on our building and plan on paying it off within 15 years, which will give me the option of practicing part-time at that point. When I decide to retire, I can either sell the building and the practice or lease the office space if I can't find a buyer immediately. For now, I am proud to be the owner of my practice and the building that houses it. Take-away lessons Most people don't rent their houses for their whole lives, so why should physicians lease office space for 40 years? If you know you are going to stay put, take advantage of the benefits of ownership. You can deduct your mortgage interest while gaining equity and practice rent-free and (eventually) mortgage-free.