Using Current Home as a Rental

[Amy Atkinson]

Hello, looking for some guidance.  I am looking to move to a different home, and would like to keep my current home as a rental.  It has a great 3.5% mortgage, about $70K of equity, and it should cash flow a modest $200-300 a month at this point.

My question is - do I just keep the house in my name and run the rental under my name? I always hear that due to liability and taxes etc, investment properties should go into an LLC.

What is the best way to turn my existing home into a rental?

Thanks in advance!

[Corby Goade]

If this is your first one, don't worry too much about the LLC and liability stuff. You can mitigate almost all of the risk by just hiring an excellent property manager.

Leave that loan in place, as long as you've occupied the house for at least one year, you're good to go. 

Best of luck!