Many people are curious about what it takes to convert a primary residence into a rental, so today we’ll get to the bottom of this common question.
People often ask us whether they can convert their current residence into an investment property after they buy their next home, so let’s get to the bottom of this question today.
Actually, keeping a property to use as a rental instead of selling it when you move can be a great way to generate extra income. However, there are certain standards you’ll need to meet.
For one, you must rent out the property using at least a 12-month lease. Also, when you take on a tenant, your lender will need to verify that their security deposit has cleared and is in your account. This helps them to ensure that the lease is legitimate—not just an under-the-table arrangement.
Once you’ve met these two qualifications, you’re all set to start reaping the benefits of your new rental property. When executed correctly, this strategy can not only help you to qualify for your next home purchase, but can also eliminate any remaining debt you owe toward your first home’s mortgage.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.