Tips for managing first long-term rental

[Laura Perrot]

My husband and I bought our first house (3b 3b end unit townhome) in April 2023. We own about 10% equity with a 5.875% interest rate. We are currently putting $300 extra towards principal every month.

My husband is a residential contractor and we are planning to build our forever home on family property in the next 3 to 4 years. Once we have that house, our plan is to keep our current townhome as a long-term rental. Likely managing it ourselves.

My questions are… What did you wish you knew going into your first rental experience? Any tips on managing cash flow? Anything you would do differently if you could go back? Is there anything we could be doing right now to prepare?

Thank you in advance for your expertise! I really have found great value in this forum!

[Markus Shobe]

Prepare for big repairs such as roofs, air conditioning units, and etc. Put money aside for these items each month.