converting primary residence to a rental

[Diane Stinebaugh]

Hi everybody!

I'm a newbie investor, just bought my first rental in February.  I am now dreaming and scheming about my next property.  here are my questions....My primary residence would make a great rental property.  There are a couple of  rentals on my street and they are never, never ever vacant.

1.  Do I have to change the loan if I rent the house out?

2.  repainting and carpeting the primary turned rental would be a business expense? 

3.  Would you suggest buying another single family to move into or a nice duplex that would hold my family in one side and "house hack" a couple of years?  

4. If I went the duplex route, could it be in an LLC while we live there?

that's all the questions I have for now....I know I'll think of more.

thanks!

Diane

[Rick S.]

No, you do not have to get a new loan. 

 Yes, we painting and carpeting are rental expenses.

Remember, if you have any equity in your personal residence, and then you convert it to a rental, you will lose your tax free capital gains after 3 years, unless you move back into it in the future.