Transition Into First Rental Home

[Michael Craig]

Hello everyone! A little background, I bought my first home 3 years ago and am looking into buying another home that I can then move into which would allow me to make my first home an investment property. So, my question for you all is how do you make that seamless transition between moving into your new home and paying that mortgage while also getting your first tenants at the rental property that obviously has another mortgage? What was your transition like? What's the best way to advertise your first rental?

[Lacey S.]

You will always have gaps between tenants, you will need to plan for vacancy in your numbers. I usually estimate 5-10% for vacancy. For the first time (and subsequent ones!), you need to make sure you have reserves to cover the mortgage & other expenses in between tenants.

Have you checked that your current home will cash flow as a rental? Run the numbers or you might get a bad surprise. Many homes do not cashflow.