How to turn your current home into a rental.
A home is a place to build memories with your family. Most families get to a point in their lives where they need to make a change – whether they need to move for a job or need a larger home for their growing family.
Rather than selling your home before making the move, I suggest holding onto it and renting it out. Read below to learn more about this, or you can watch the full Instagram video here.
WHY?
When you convert your current home into a rental, you build your wealth faster and have a steady stream of rental income that can be used to upgrade to your next dream home. Now, instead of one property, you have two properties that will grow in value over time. What is the big deal? Check this out…
Imagine this scenario: You moved from your old home that was worth $450,000 into your new dream home that is worth $700,000 back in June of 2021. If you fast forwarded one whole year to June of 2022, the market would have grown both of your home values by 30% each. Look at these new home value numbers:
Old Home: $450,000 → $585,000
New Dream Home: $700,000 → $910,000
That is over $345,000 between both of these homes that would have been added to your real estate portfolio in simply one year for doing absolutely nothing other than just owning two different properties.
HOW?
Step #1: You will want to reach out to a local realtor to help you run some numbers. If you need someone to help, you can always reach out to me directly. You need to make sure that you can rent out your current property for more than what you are paying in your current mortgage.
Step #2: You will need to start saving for a down payment for your dream home. You will be able to get away with just a 5% down payment on your next property.
Step #3: Once you have enough saved for the down payment, you need to get your house cleaned and ready to show.
Step #4: Your real estate agent will help you find a tenant that can start leasing your property in two to three months. This is important because you will need a signed lease before you get a mortgage on your next property.
Step #5: You can start looking for your dream house after you secure a tenant. Once you do find that dream house, it is important to make sure that the closing date on your new home is before the lease starts in your current home.
The next time you are looking to move, make sure to give some thought to holding onto that property and turning it into a rental opportunity. You can build your wealth and you can use that steady stream of rental income to upgrade to your next dream home, invest in another asset, or anything else you can imagine!
