My plan for investing is to buy and hold single family homes. Personal circumstances have come about where the first property I buy I will just need to start renting it outright rather than moving in (as I would have preferred). I know that buying and holding is a strategy to reduce some of the costs that you would see in buying and immediately renting. I'm trying now to see what the costs would be for buying a home and immediately renting it.
Any info about the costs to expect would be much appreciated. Comments or suggestions?
Buy and hold means to buy properties and rent them out long term vs. wholesaling or buying to flip. If you make sure your property is as close to the 2% rule as possible, the property will take care of itself vs. you having to pay for someone to live there. 2% ex: buy for $50K and rent is $1,000 per month. Make sure you have enough of a reserve to account for unexpected expenses such as vacancy and major repairs.
I don't understand the question. Do you mean you wanted to buy a home and move into it, to later turn it into a rental? And now you just want to buy a home solely as a rental?
Whoops, I realize my question was extremely vague! And using incorrect terminology--I do plan to buy and hold vs. flipping--what I think I meant was house hacking, but that even may be the wrong wording.
My plan was to buy a second home, move into that, renting out my first place. I would then live on the second property for the two years as to avoid paying taxes on the gain. So I was wondering, since I will immediately be renting out the second property, if I have to pay any special taxes or costs due to the immediate gains from it being an income property. Which maybe I answered my own question, from my research it appears that a capital gains tax is only if you sell the place...