Keeping your current home in Doylestown as a rental, could be an excellent investment option for you.
IS YOUR HOME RENTABLE?
If you have outgrown your current home in Doylestown and are considering moving up to a larger one, think about this… Should you keep your current home as a rental property?
Wealth is grown, in my opinion, by acquiring assets. Right now you probably have a decent interest rate and some equity in your current home. Put that to good use!
Talk to a local REALTOR (I hear Kim Bartells with REMAX is great!) and decide if your current home is an ideal size and price point to be a income producing rental property. If that conversation determines you could certainly rent out your current home for more than you currently pay in mortgage, insurance, taxes, and a contingency factor, then we are over the first hurtle!
CAN YOU AFFORD TO DO THIS?
Now, for affordability. Banks are more strict today then they have been in years past. In order to keep your current home you need to be able to qualify for both mortgages. That can be a hard hurtle to clear for some owners.
There is the possibility that if you could move out and live with parents for a certain period of time (check with local commercial lenders to see how long that would need to be), that you could then use the money collected in rent as additional income. Some lenders also will want to see two years experience managing rental properties.
A chat with a local, commercial lender will help you navigate the financial end of this goal.
TAX ADVANTAGES
Check with your accountant, but there are many tax advantages to owning rental property including depreciation. So, even though you may not necessarily net a tremendous amount of extra money from renting, keep in mind that someone else is paying down your mortgage and you will receive positive impacts on your tax return each year.
