A question before property investment......

[Derrick Alfonso Tafur]

Hello from Ohio,

     I'm finally at the point where my wife and I are ready to build a new house.   I've been tossing around the idea of using my current house as a first rental property and have already had multiple inquiries to rent.  

The monthly rent would be enough to cover the mortgage and carry some cash flow to boot but if there is just one month that the house is vacant due to turnover, I lose 4 months of said cash flow.  I have enough back up funds if this did occur but I'm wondering how other investors got over that risk factor.     Maybe it's just me being too cautious..  

Any feedback would be greatly appreciated.

Derrick from Ohio

[Steve Vaughan]

Hi @Derrick Alfonso Tafur!  Thanks for posting.  If my current home was close to my new build, had good appreciation potential and I wasn't sitting on a massive tax-free gain, I would probably keep and rent. But that's me.  I have been a LL for a while.  Your house isn't worth like $400k or something, right?  Even with skinny cashflow now, an appreciating asset you are paying off with be a huge asset for you and your retirement income down the road.  Will you be ok with a renter and their mentality in your 'home'?  Hard sometimes to detach emotionally from that.  Will your wife or SO be ok with it?  If it's too emotional to see the grass die, your window screens disappear and a bunch of crap be in the yard, then maybe reconsider, ya know?  Lots of intangibles with landlording, especially 'your house'.  Good luck!