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Rent Your Current Home
This is by far the best opportunity buyers have had to get their new homes at fantastic prices. However, so many people in today’s market are unable to sell because of low or no equity in their homes, they are essentially “upside down”. Don’t let that stop you from buying, there is still a way to get your dream home…rent your current one! The rental market is strong and will only become stronger in the months to come. There are many benefits to renting your home. It can allow you to get into something different and provide a monthly cash flow. Even if your rent it for less than your mortgage, your tenants are still paying down the mortgage every month. There are many tax advantages you can benefit from depending on your individual situation. As far as qualifying for your new home…as long as you can provide a signed lease agreement, that revenue is classfied as income in your debt to income ratio and will have little effect on your purchase power. Over time the market will come back and with appreciation. You can sell it then in a more favorable market or decide to keep it and add to your monthly cash flow. It can be a risky business, you’ve heard the horror stories with people trashing the homes, paying rent late or not at all, noise complaints etc. Well if you can stomach the risk and take your time researching your potential tenants it can be a very enjoyable and profitable experience. Examples of rental forms can be found on the web all though I do recommend having them drafted by an attorney. There are many other factors to consider when renting your home like your city ordinance/license, deposit amounts, check lists, the safety of your home and tenants, length of lease, rights of the landlords, right of tenants etc. Take your time and do your homework…it is a great alternative and allows you to make your next move!
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