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Are there advantages to turning a condo that your are upside down in your mortgage into a rental pro

  • October 09 2012 - US
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Answers (2)

Profile picture for MatthewLongKW
Absolutely-
Do some simple math and know what you have to clear each month to cover that mortgage! Its not hard to be a land-lord, contrary to belief, there alot of great books you can read and most provide some basic contracts to bench mark off to use for your future tenants and to protect your investment. Make sure you screen your tenants, conduct a general inspection of the home from time to time and be patient for the market to bring your homes equity back up!
GL!
  • October 09 2012
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Yes. Investment real estate is all about cash flow. If you can find a way to rent your condo and achieve a postiive cash flow (rent - mortgage/taxes/HOA/expenses) then you are really on to something. 

You should take the time to prepare to become a landlord - that is, understand your local laws, ordinances and regulations before taking on the role. You could end up in hot water very quickly if you are not educated, so perhaps a property manager would work as well.

There are also possible tax advantages to being a landlord - check with a tax pro to see if you qualify. 

Even if you break even or have to come out of pocket each month, the advantages of being an investor may outweigh the disadvantages. Weigh all options before going the short sale or foreclosure route.

Lastly, check with your HOA to ensure that renting your unit is possible. Some HOA's have a process for applicaton or may flat out deny the request.

Hope this helps, 
  • October 09 2012
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