Maybe it was the second glass of wine, but when you had to listen Rob Schmobb talk about how he converted his former home into an income property, it seemed like a tempting idea. Forgo the hassle and risk of selling your current home, use it as an income property and move on while improving your finances. What’s the downside? Well, there’s six things to think about first.
- Do you want to be a landlord? Being a landlord is different than being a homeowner. The expectations of a renter are going to be place more demands on your time and finances.
- Research the rental market—estimate how much rent you could get with the help of a broker and if it would cover the mortgage, taxes, and expenses.
- Ask an accountant about tax implications.
- Do you need a property manager? If you are moving out of town, you need to hire someone to take care of the property and tenants.
- Crunch the numbers– estimate your rental profit and compare it with cash you would get for selling your home.
- Do you really want to be a landlord? It’s a thing.
Using your current home as a rental property can be quite successful and rewarding. Check the numbers and see if it’s a situation that can work for you.
Photo by Cody Hughes @clhughes21