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?
@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.
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.
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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