Buying A Second Home And Renting Out The First: Get Buying A Second Home Advice From Experts

Have you ever dreamed of buying a second home and renting out the first? It seems that we can, and we’re excited. The thrill of finding a new home while earning money from our first one is amazing! However, I have questions about the whole process, so I went to my go-to website for this sort of thing, Real-estate-yogi.com, to get answers. As always, I was able to find what I needed right away. Here is just a little of what I learned.

If we’re going to be buying a second home renting the first, there are tax consequences to take into consideration if we make a profit on the rental. Real-estate-yogi.com notes that if we end up taking a loss on the rental property, we can write it off at tax time, as well as writing off any repairs we’ve had done to the first house. Of course, we could just hire a property management company so we don’t have to deal with the repairs ourselves and we’ll have a better chance of getting decent renters. I know that there are families out there who’d love to get into our first home; I just want to be assured that they’re good people who won’t ruin our things or the house itself. Now that I think about it, a management company sounds like a great idea!

It will be much easier for us to take out a second mortgage if we have a signed rental agreement prior to buying second home renting first. The bank will see that we’ll be able to afford both mortgages because the rental income will pay for the first one and we have really good credit, meaning that we’ll qualify for a great 2^nd mortgage. Real-estate-yogi.com suggested working with the Federal Housing Authority (FHA), but they no longer count rental income when someone applies for a loan. This means that we’d have to qualify for both mortgages on our own, which we can do. Also, our debt-to-income ratio cannot be more than 41%, which will include both mortgages. Hmmm… That’s something to consider before applying with an FHA-approved lender.

I’ve decided that the process of buying and selling homes at the same time is fun, and I think I’ll become a realtor just to help folks do it. I know I have the best partner already www.Real-estate-yogi.com – to guide me along. If you have property financing questions and need some quick, accurate answers, give the well-trained staff there a call at 800-987-1397 for a free preliminary consultation. There’s always someone available to talk with you, so give them a jingle. You’ll be glad you did.