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Some people bought their home in the last year or two and have noticed either, the value has still dropped or that their mortgage is unbelievably low, some both. Well even if you are one of the people who has noticed that your value has dropped you would be surprised that the mortgage you pay is still low enough to be covered if you rent it out. Why would I rent it out you ask?
Let me rewind a little and ask the question that some people have on their minds.
The prices are so good right now how can I get another property for investment?
There is no quick fix. This one may take a little time. Here is how you can do it. You will have to save up about 20%-25% for a down payment, depending on what you work out with your lender.
Then you rent your home out, and you move to a rental. Why? Because you have to be able to use the rent you receive from your tenants as income.
When tax season comes around you claim that rental income on your taxes and it now becomes apart of your yearly income. This will be calculated in what you make a year helping you qualify for a new loan for another house.
Now you can either move into the new home or your original. This is the best way to get into another home without having to qualify with two mortgages.
Note: All of these terms are subject to the types of loans you have. Also make sure you are following the rules of your lender/Homeonwer's Association, such as how long you have to live in your home before you could rent it out. Do not get caught in anything illegal. Make sure you are aware of all the rules and practices that you must follow concerning your home.
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