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Answers (4)
- Chris Martino, "chris martino"
- Contributions:2
Yes you can do that.
Be aware that unless you have owned rental property in the past few years, that the Lender you are getting your NEW loan from, might not let you use the rental income to offset your expenses. If this is the case make sure you get qualified carrying BOTH mortgages (new and current house) without counting the rental income.Also take into account the taxes and insurance and possibly HOA dues as well when you decide on a fair market rent for your house. One possibility is that once you have done the above, you might want to offer the renter a discount if they pay a full year or half a year upfront as this will help to differ moving costs and closiing costs on the New house, as well as nopt having to sweat getting rent for that first year.
Goood Luck!
Chris
Be aware that unless you have owned rental property in the past few years, that the Lender you are getting your NEW loan from, might not let you use the rental income to offset your expenses. If this is the case make sure you get qualified carrying BOTH mortgages (new and current house) without counting the rental income.Also take into account the taxes and insurance and possibly HOA dues as well when you decide on a fair market rent for your house. One possibility is that once you have done the above, you might want to offer the renter a discount if they pay a full year or half a year upfront as this will help to differ moving costs and closiing costs on the New house, as well as nopt having to sweat getting rent for that first year.
Goood Luck!
Chris
- artdude102
- Contributions:3
I have done this and although it hasn't been entirely without headache, it has been worth it in the long run (keeping the first house as income property). My advice is to really REALLY do background checks on your potential renters and have a lawyer draw up a water tight lease agreement. If you are in a financial position to do so, you might also consider a property manager- but do some checking up on them as well before hiring. I hired a less than honest manager who rented the property to clients who trashed the house- I was stuck with the fix up bills and he pocketed the finders fees for these losers.
- James Callas, "ABBAUSA"
- Contributions:957
Be cautious in this arrangement.
It is all very good while the rent is coming in and no major repairs or maintenance is required at the rent house.
Many years back I did this numerous times, BUT when the economy fall (that time it was the Texas Oil Industry Bust) I had many vacant properties that I was not able to service the debt on.
If your income (your job or professional income)
supports both properties without a tenant then go for it, but if not save back a fund to cover a vacant property say 6 months or more.
Good Luck!
James Callas - Realtor®
It is all very good while the rent is coming in and no major repairs or maintenance is required at the rent house.
Many years back I did this numerous times, BUT when the economy fall (that time it was the Texas Oil Industry Bust) I had many vacant properties that I was not able to service the debt on.
If your income (your job or professional income)
supports both properties without a tenant then go for it, but if not save back a fund to cover a vacant property say 6 months or more.
Good Luck!
James Callas - Realtor®
- Benny Smith, "bennysmith1"
- Contributions:177
Yes this is very common. I could write a book on the various possiblilites and some agents my take a stab at it but it comes down to talking to your lender about it. If you do not have one I can help with that as well. You will need the following information Amount you owe, Monthly payment, have your realtor do a rentle cma of the area. This will give you the rent expected. If your lender says to apply first get someone else. A good lender will tell you what you qualify for with the rent expected. Keep in mind there will other requirements but the most constistant is to have money in the bank after closing to pay the mortgage in case the home is vacant. You can often count your security deposit and the last months rent collected prior to renting.
Good Luck Benny Smith
Good Luck Benny Smith
Can I rent my house out, and still buy another house?
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