Buying rental house then potentially moving

3 Replies

I am interested in potentially buying a rental property (duplex) and living in one side of it. I would most likely put 20% down and have the tenant pay the mortgage thereafter. If a year/two, etc. from then, I decide to move cities for another job what are my options? Hire a management company?

sounds about right! With an FHA loan (or conventional mortgage), you're expected to live there for 2 years. Of course, if something unexpectedly happens sooner, that's usually fine too.

When you move, you can decide whether to manage remotely. It’s tough, but if you have a good handyman and support staff local, you might be able to do it. Or hire a manager. Don’t wait for the last minute though. There are a lot of mediocre/poor managers out there. Make sure you find a good one.

@Account Closed I definitely recommend hiring a property manager. They understand the market, they are far more capable of screening applications, understanding the laws, etc.

I don't recommend waiting until you move to find a PM. Start your search early so you have plenty of time to figure out who you will use. You may even choose to transition to a PM earlier. Just make sure you screen them thoroughly, just like you would a tenant. 

@Account Closed , first things first, you have to do a full analysis of the property as though it was an investment (i.e., you're not living there). If the numbers don't pencil out, there's no reason to consider keeping it should you have to move.

Yes, the best course would be to hire a PM. Make sure you include this expense in your analysis. Typically 10% of rent.