Want to use my current house to invest.

Bethlehem, Allentown PA · Member since 2021 · 3 posts · 3 votes

Hello, I own a house and still paying my mortgage, don't have a job, but i want to buy another one to move into with my family. But the current one I own, I want to fix it up and use it as an investment property. Don't know what to do first.

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Jules Aton

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

This can be a great stepping stone to RE investing however unless you have a large sum saved I would recommend getting a job and saving first. Then you can decide how to proceed with renovations on your current home and purchasing another one when appropriate.

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Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
1d
This can be a great stepping stone to RE investing however unless you have a large sum saved I would recommend getting a job and saving first. Then you can decide how to proceed with renovations on your current home and purchasing another one when appropriate.
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Thomas SloanPro Member
Partnership at BiggerPockets · Denver, CO · Member since 2021 · 16 posts · 16 votes
1d
Agree with Jules. It's probably smart to secure a job first.

Once you feel ready, you can look into a HELOC as a financing option.
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
1d
Quote from @Joel Cruz:
Hello, I own a house and still paying my mortgage, don't have a job, but i want to buy another one to move into with my family. But the current one I own, I want to fix it up and use it as an investment property. Don't know what to do first.
This could actually be a really good way to get started in real estate. I’d first see what your current house could realistically rent for and then run the numbers with your mortgage, repairs, taxes, insurance, and everything else. If you don’t have much saved right now, I’d probably focus on getting a job and building up some cash reserves before taking on another property.
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Diana KhanPro Member
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 403 posts · 160 votes
1d
Quote from @Joel Cruz:
Hello, I own a house and still paying my mortgage, don't have a job, but i want to buy another one to move into with my family. But the current one I own, I want to fix it up and use it as an investment property. Don't know what to do first.
@Joel Cruz, I think your idea can work, but I would take it one step at a time. Before putting a lot of money into the current house, I’d first figure out what it could realistically rent for and what you actually need to do to make it ready as a rental.
I’ve worked with owners making that transition, and one thing I always encourage is looking beyond just the renovations. Turning your home into a rental can also mean changes with insurance, the lease, and local rental requirements, so those are worth checking before you move out or take on another property.
You’re asking the right questions before jumping into it, @Joel Cruz. I work with landlords and real estate investors on these kinds of property matters, and I’m always happy to stay connected with people getting started in real estate. Since you’re in Pennsylvania, I’d confirm the local legal requirements with a professional there as well.
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- Joel Cruz
  OP
  Bethlehem, Allentown PA · Member since 2021 · 3 posts · 3 votes
  1d
  Thank you so much!
  0 Reply
- Quinton Vidaurri
  Livonia, Wayne County · Member since 2026 · 4 posts · 3 votes
  1d
  @Diana Khan very similar to Joel, I am a homeowner currently who is very interested in RE investing and plan to convert my current property into MTR and move my family into a future property. I have a W2 and feel like this could be possible in the next 5 years. In the meantime, this is exactly all the questions around the space I am trying to immerse myself in before jumping into it! Thank you so much for this post and showing me I'm on the right path!
  1 Reply
Nicholas FloydBusiness Member
NY · Member since 2026 · 200 posts · 77 votes
1d

Joel, I’d start by figuring out three things on your current house: how much equity you have, what it could realistically rent for after repairs, and what the repairs would cost.

Since you’re not working right now, qualifying for another traditional mortgage may be the biggest hurdle, so I’d speak with a lender before making any major moves. If you have a business or properly structured LLC, business funding could also be worth exploring for legitimate investment-property expenses such as renovations, repairs, or working capital, depending on your qualifications and the lender’s requirements.

I work in the business funding space, and there are options such as business lines of credit, 0% APR business credit cards, business loans, and revenue-based funding depending on the borrower’s profile.

Just make sure you run the full numbers first and don’t take on new debt without understanding how it could affect qualifying for your next mortgage. The goal should be to make the current property a solid investment without putting yourself in a difficult position financially.
2 Reply
- Joel Cruz
  OP
  Bethlehem, Allentown PA · Member since 2021 · 3 posts · 3 votes
  1d
  Thank you so much!
  1 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1d
Anyone letting this have any motion should be ashamed of themselves.
Focus first on getting a job, ideally one with tangible benefits for healthcare and retirement. @Jules Aton is right.
3 Reply
Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 301 posts · 94 votes
1d
That’s a great goal, @Joel Cruz You already have an important starting point: a home that could potentially become a rental. Since you are not working right now, begin by talking with a few lenders to see what would be needed to qualify for another mortgage. Then run the numbers on your current home—expected rent compared with the mortgage, taxes, insurance, repairs, maintenance, and vacancy—and confirm that your loan, insurance, and local rules allow it to be rented. If the numbers look good, focus on building a repair budget and emergency reserves. You do not need to figure everything out at once; take it one step at a time, and if buying now is not realistic, securing stable income can put you in a much stronger position for the next opportunity.
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Quinton Vidaurri
Livonia, Wayne County · Member since 2026 · 4 posts · 3 votes
1d
Agree with everyone about getting a job and stable income first. While building reserves read Rich Dad Poor Dad and Profit First for Real Estate Investing. And listen to as many BP podcasts as you can to learn all different types of strategies!
1 Reply
JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
1d
There's no question here that getting a steady income (probably means a job) should be the only focus right now. You have a family and a current obligation already (a mortgage). Investing is for people who have something to invest. All you likely have is time since you're not working. Depending on your current mortgage you may not even be able to legally do what you're proposing (let someone else rent it while you move elsewhere, as you might have a primary home responsibility to the note).
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Dan Duenas
Lender · Member since 2026 · 4 posts · 1 vote
23h
Joel — everyone telling you to get a job first is talking about conventional mortgages, and they're right about those: no job, no W-2, no loan.
But the rental side of your plan doesn't work that way. A DSCR loan qualifies on the property's rental income, not yours — no tax returns, no W-2s, no pay stubs, no job required. If your current house rents for enough to cover the payment after you fix it up, the income question gets answered by the property itself.
The sequence I'd look at:
1. Find out what the house would actually rent for fixed up — ask a local property manager, not Zillow.
2. Price the repairs honestly.
3. If the rent covers the costs, the DSCR route turns your current house into the rental without you needing a job first.
The new house for your family is a separate question and a separate loan — that one does need income docs. But don't let the job situation stop the rental half of the plan.
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- V.G JasonPro Member
  Investor · Member since 2022 · 3k+ posts · 3k+ votes
  4h
  Quote from @Dan Duenas:
  Joel — everyone telling you to get a job first is talking about conventional mortgages, and they're right about those: no job, no W-2, no loan.
  But the rental side of your plan doesn't work that way. A DSCR loan qualifies on the property's rental income, not yours — no tax returns, no W-2s, no pay stubs, no job required. If your current house rents for enough to cover the payment after you fix it up, the income question gets answered by the property itself.
  The sequence I'd look at:
  1. Find out what the house would actually rent for fixed up — ask a local property manager, not Zillow.
  2. Price the repairs honestly.
  3. If the rent covers the costs, the DSCR route turns your current house into the rental without you needing a job first.
  The new house for your family is a separate question and a separate loan — that one does need income docs. But don't let the job situation stop the rental half of the plan.
  Gotta love these shameless lenders.
  This is exactly why taking investment strategy from someone who only sells debt is dangerous.
  You are so focused on forcing a product to fit that you don't care if it ruins the borrower. It’s a purely transactional mindset. Just ABC right? Always be closing the loan and leave them holding the bag. It's the transactional car dealership model: extract maximum value on a rare transaction because you don't care if they survive to buy again.
  Lenders only care if a loan can close; Joe will actually have to survive the aftermath. This guy isn't an investor, he's unemployed FFS.
  Pitching this to a vulnerable homeowner without a W-2 is shameless.
  0 Reply
Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
19h
Joel, I’d start with the house you already own before worrying about buying the next one. The first question is whether the current house would actually work as a rental after the mortgage, taxes, insurance, vacancy, maintenance, and reserves. If the numbers work, then you can start looking at what it would take to move your family into the next property.
The bigger hurdle may be financing the second home since you mentioned you currently don’t have a job. Having equity in the first property can be helpful, but lenders generally look at qualifying income and the full financial picture when determining whether you can support another mortgage.
I’d also be careful about putting a lot of money into fixing up the current house before knowing what rent it can realistically command. You want the renovation to improve the investment economics, not just make the property nicer. From the tax side, converting a former primary residence into a rental also deserves some planning. The timing of the conversion, depreciation basis, and what happens if you eventually sell the property can all matter.
Happy to connect!
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Dan NelsonBusiness Member
Real Estate Broker · Chicago and Kansas City · Member since 2016 · 87 posts · 67 votes
15h
Order matters more than anything else here, and the good news is that the order is simple.
Your next mortgage gets approved on income, not on the house. So the job comes first, not because it is the fun part, but because it is the thing standing between you and the loan on the place you move into. Lenders want to see it before they will count anything else.
Once that is in place, two things work in your favor that people miss.
First, the house you already own. If you move out and rent it, most lenders will let you count a share of that rent toward what you qualify for on the next one, usually with a signed lease and the deposit in hand. Ask your lender exactly what they need in order to count it. That single answer changes what you can afford on the next purchase more than anything else you will do this year.
Second, what you buy next. If you move into a two to four unit instead of a single family, a conventional loan goes to 95 percent on an owner occupied two, three or four unit, so five percent down. You live in one unit, the other units cover a large part of the payment, and the rent from them can count toward qualifying. That is the move we do most often with first time buyers in Chicago, and it is the fastest way we know of to end up owning two properties instead of one. You only have to live in it for a year. This is how my wife and I built up our porfolio. Moving into one investment property, fixing it up, renting it and moving to another.
On fixing up the one you have, do the work that makes it rentable and stop. In our market a second bathroom is the renovation that most reliably pays for itself. Past that it is fresh paint, working systems and an updated (rental quality) kitchen. Save the rest of the money for the down payment.
So, in order: income first, lease the current house, ask the lender what they need in order to count that rent, then shop two to four units for the one you move into.
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Abu Nahyan Al Nuaimi
Real Estate Consultant · Dubai · Member since 2026 · 25 posts · 7 votes
15h
Start with the numbers. check your equity, mortgage balance, renovation cost, expected rent, and monthly expenses. Since you currently have no job income, speak with a lender first to see what financing you may qualify for. If the rental can produce positive cash flow, renovate carefully, keep a reserve fund, and then plan the next home purchase.
2 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
8h
Why aren't you fixing up your current house, so you can eventually rent it out?
You might even be able to get a HELOC on it and use the funds for down payment on next purchase.
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