Need advice on renting out home
Hi BP Community! I'm new to BP and am excited to read the posts, attend the webinars, and quite frankly to get started! I currently own a home that is getting to be too small for my family. I also have friends who are in a cramped apartment who are looking to move into something bigger. See where I'm going? So, I would love to rent out my house (they are fully onboard), however I don't have enough cash (yet) to carry two mortgages. I was told I would have to show them renting at that address for two years prior to being able for lenders to not count it (the mortgage) against my debt-to-income ratio. Then a friend who introduced me to BP stated I only needed to show one month's payment. I live in NJ.
Can someone clear this up for me? Also where is the best place to put the reserve money so that I can use this for another house (or property)? The bank? In stock? In an IRA? I would like this money to grow quickly too!
Are there other aspects in this line of thinking that I should consider? Like I said I'm new at this, so while in this planning stage, I'd be appreciative of all the help I can get!!
Thanks in advance for your guidance!!