All Forum Posts by: Carter Mahnke

@Carter Mahnke first off, I'm going to assume that you've done the analysis and determined that renting it out is the best financial move. While it can be great to rent out a former primary, I've done it myself, there's also the potential that selling it and redeploying the capital into a property purchased with the intention of being a rental property would yield greater returns.

If you do decide to rent this house out, be aware of if you've earned the primary residence capital gains tax exemption. If so, you must sell it within 3 years to maintain that exemption. So once you've rented for 2 years, you'll want to evaluate how much you're saving with that tax exemption, and determine if it's a better move to sell it or keep it.

With all of that out of the way, are you self managing or using a property manager? If you are self managing, I would start with evaluating different online platforms that assist self managers: Hemlane, Realtor.com, etc. If you are using a PM, start interviewing PMs. The management choice you make will help guide you in what else you need to do to prepare.

Thank everyone for the helpful replies! Lots of questions I need to solidify answers to. Exactly what I needed.

Adrienne, I've done the analysis and it should be a solid cash flowing deal. We've owned the home for 5 years so I got in at 4.7%. The mortgage is $1000/mo and comps are renting in the $1550 range. I've got about $85K of equity currently that I could access. I considered a HELOC to help finance a second deal, but there is certainly the chance I could get an investment with even more potential by selling and accessing that amount in full, just feels so much more accessible to rent what I've already got this first time learning the ropes.

I'll be honest, I have never heard of the tax exemption you mentioned, and after reading the description on the IRS page, I still don't understand how that comes into play for me. I'll do some research.

I'm planning to manage myself, so it seems that getting a good software platform set up would be very helpful moving forward.

For a little more background, my family will be moving in with my parents for a year or so while we get started renting (while helping them with maintenance on their own home) which will give me a focused time to save up more capital.

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Chesapeake, Virginia

Hey everyone, I'm brand new and my family and I will be moving out of our first home soon and are planning to rent it out.

Could someone give me a rundown of the things I want to have in place and squared away before we put the listing up, or is that something I should just DO now?

We're planning to move in April.

Thanks!

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Chesapeake, Virginia

Hey Austin! Do you have any info on the March event? I'm looking forward to my first meetup.

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Chesapeake, Virginia

Couldn't you just hire/recruit 4 dudes to unlock the door and physically kick them out? What could they claim, that you kicked them out of your house?

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All Forum Posts by: Carter Mahnke

Carter Mahnke has started 1 posts and replied 5 times.

Post: Real Estate Rookie Investors Monthly Meet Up!

Post: About to List FIRST Rental, What Must I do First?

Post: About to List FIRST Rental, What Must I do First?

Post: Real Estate Rookie Investors Monthly Meet Up!

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