Backing your way into rental properties

3 Replies

My wife and I welcomed a newborn into the family 3 months ago.  We don't "need" to move at the moment but I can see us moving in the next 1-2 years.

I like the idea of holding the property though.  There has been significant price appreciation since we purchased the home in 2013, it's a pretty sought-after location, and I think it would make a great rental unit.  Plus I think we will have paid the mortgage off when we move.

How many of you backed your way into real estate by moving to a new home and renting your former residence?  What unforeseen pitfalls did you encounter if any?

Thanks!

@Tim Reimink I would take a hard look at selling if it has appreciated a lot and is in a sought-after location. Usually some locations are better suited for flips than rentals and vice versa. If you have lived in the property for at least 2 years you don't have to pay any capital gains on the sale. Keep that in mind. 

Jeremy Taggart, Real Estate Agent in PA (#RS340668)
724-841-1392

@Tim Reimink

Just curious, what part of Miami (I assume Miami from your location on profile) is your property located? 

I was in a very similar situation, minus the appreciation. I think the biggest unforeseen pitfall I encountered was not calculating (and saving) money for capital expenditures. Although it was a new house when we moved in, we moved out after 7 years. Should have planned to save some money month by month slowly for the eventual repairs that will be needed. 

(571) 336-6261

I’m in coconut grove. There’s really no space for additional units in this area. When we bought in 2013 we took out the carpet and installed bamboo flooring; we put $35k into a complete overhaul of the kitchen; and we added impact windows in 2015. I’m sure people have been wrong before when making these statements but it seems like a property you just don’t let go of.

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