Convert Primary Residence to Investment Property
Hi, this is my first post since I joined the community. I would like to ask the following: in which situations makes any sense to convert a primary residence to an investment property? Note that I've been there for over a year - owner occupancy okay - and the LTV is around 73.
Thanks in advance guys!
Most Popular Reply
No you do not need to change anything with the current mortgage, but you can inform them that it is no longer owner occupied. If you rent it out you should get landlord insurance policy which differs a bit from regular homeowners insurance.
To answer if you should rent it out you would have to give/get more specific numbers around what market area rent is and what your expected vacancy and PM fees will be. Additionally, you should compare that to how much you would cash out from the property if you sold it and if that money could produce a better return investing elsewhere. Good luck!