Good 1st idea on how to jump in ???

Question

Hi everyone, I am super excited that I found this very useful forum and site. There is a wealth of information and great people here, so I truly would like to say thank you. I am thinking of refinancing the house that I currently occupy with a cash out refi. I owe roughly 98k on the house and the market value is around 200k. I have done a lot of upgrades and reconditioning over the last 9 years of ownership. ( new roof, new a/c , tile floors, new energy efficient windows etc... ) I am thinking about finishing up the remodeling with the cash from the refi, and using the rest on a down payment on a new house and renting my current house out. The average rent in my neighborhood is around $1450/month for a house my size ( 3/2/2 1470 sq. ft. ) Then rehabbing the new house and start the cycle all over. Does this seem like a good idea ? I think once I get a rental under my belt, i will be more confident. I am in Apopka,FL. if that helps.

Abdul Shishi · Answer

Following the 1%  rent rule on SFR really limits the potential for being SAD in the future.

Aaron K. · Answer

Why don't you run the numbers on your current house as a rental vs something else that you could find for sale.  If you are okay living in your current house still you might have better luck with something you buy as a rental because you will evaluate it as such and may get a better return.