Don’t Sell…Keep it
“Buying a second home might seem scary in this market especially coming up with a down payment, but Cohen says many people can tap into the equity of their current home to help buy home number two.”
A big trend that can be a smart move is converting your current home to a rental property instead of selling your home to buy your next home.
Lease amounts for renters have been on the rise, so if there’s any way to hold onto your home and rent it out, do it. There’s a large number of renters who aren’t able to find a place to live because rental inventory is low.
Now, if you’re thinking you’d rather not mess with the responsibility of a rental, let’s talk numbers for a second. The average rental home in the Phoenix metro area currently rents for over $2,000 a month and in some neighborhoods, well over $3,500 a month. In many cases, it makes sense to keep your home and rent it out. There are ways to use the equity in your current home in order to buy your next home without needing to sell it.
Here are a few tips to help you convert your primary residence into a rental property:
Meet with your Realtor to figure out the current value of your home.
Meet with your lender to get qualified to buy another property.
Consider hiring a property manager to handle the day to day, collecting the rent, and dealing with repairs.
Don’t forget to update the county with the change of primary residence to rental residential.
Feel free to reach out if you would like to discuss turning your primary residence into a rental property or buying your next home without having to sell your current home.
