Buy a New home and Keep your Current Home as a Rental?

Buying a new home while keeping your current home as a rental property can be a smart investment decision, but it requires careful planning and preparation.

Here are a few things to expect when taking on this endeavor:

First, you need to have a good understanding of the rental market in your area. Do some research to determine how much rent you can realistically charge for your property, and make sure it will cover your mortgage payments, property management fees (if applicable), and maintenance costs.

Next, you’ll need to find a reliable property management company if you don’t plan on managing the rental property yourself. They can help you with everything from finding tenants to handling repairs and maintenance.

When it comes to buying a new home, you’ll need to qualify for a new mortgage while still being able to afford your current mortgage payments. This can be a challenge, but with the help of a financial advisor or mortgage broker, you can determine what you can afford and what loan options are available to you.

Finally, keep in mind that being a landlord can come with its own set of challenges. You’ll need to be prepared to handle tenant issues, such as late payments or damage to the property, and you’ll need to abide by local rental laws and regulations.

Overall, buying a new home and keeping your current home as a rental property can be a great investment opportunity, but it requires careful planning and preparation.