Moving and keeping old house as a rental
Hello,
I apologize if I'm posting in the wrong spot.
My name is Mike. I'm 27 from Madison and new to REI. I see a lot of long term potential and I hope to start soon!
I've owned a home for about 2 years in Madison. It has a nice, low 3.5% rate, but it does have PMI at roughly $225 per month. I'm considering keeping this home when we move into a larger home in the next year.
Has anybody else converted their old primary residence to a rental? Or do most people keep their personal homes separate from investments by just selling when they move?
Should I get rid of PMI (by putting ~$25k into the loan)? Or just leave it.
My payment (including prop tax and PMI) is about $1,525. One rental company I contacted said he thought I could rent the house for $1,700. My uncle (30 years experience on the banking side) thought $1,500 on the low end and $2,000 on the high end.
Is it customary in Wisconsin for the renter to pay electricity and water? If not, there doesn't seem to be much room for cash flow.
Thanks,
Mike