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A house would be preferable, but I'd be concerned about the liability/insurance aspect, particularly since it will be neither of yours permanent residence. Some neighborhood associations or city regulations might prohibit this as well since it would be considered a business venture in a residential area. The rules just tend to change when it's no one's permanent address and I want to make sure you find out all the ins and outs of it before jumping in.

But if you find a way to make it all work, I think a house would be better than office space!
 
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