What’s the best way to make your primary residence a rental property?
We are moving from our primary residence in Jackson, GA and want to use this home as a leasing property. Do I need to say my mortgage company about this, because it will no longer be our primary residence? What other advice is there for properly renting out our primary residence?
Forget about your mortgage company. All they care about is getting their check each month. Advice about renting is place out a yard sign, screen applicants very carefully and have a reserve. It will cost about $5000 each time you change tenants(even with excellent ones).
http://www.floridawholesaledeals44.com
If you are vacant to start using your home (your primary residence) as a leasing income, before you start, get you home appraised. When we first started in the real estate business, our first leasing was our primary residence as well. But our mistake was not getting a starting point for tax purposes, if you don’t when tax time come you will have to go back to when you first bought you house, instead of a starting point of when you started renting your house. This may possibly mean thousands when the time comes to selling this house and trying to convince the government that you only rented your house from year x instead of from the year you bought it since you have no records to prove it.
Don’t worry about your mortgage UNLESS it is an FHA loan, they will eventually find out and call the note in full leaving you to scramble to refinance. When you try to re fi a leasing most lending institutions want 30% equity, if you don’t have it the you will need to place money down for the re fi or sell. The other thing to watch for is informing your insurance company, whatever your current homeowner rate is double it for a leasing, maybe triple if you are renting in a institution area.
Excellent Luck