Renting out my primary residence

[Nick Causa]

Ok my wife and I are getting started and are going to take a page out of Set For Life and take a chunk out of our biggest expense (living and commute). Ive been an avid saver and notice the amount we could both put away by eliminating the commute all together is immense. Long story short we've decided to rent out our house and rent an apartment very close to work. Like, I can walk. This way we'll save $ on the mortgage and commute all at once. Our commute is 1hr+ drive one way for each of us. Ill have to double check with our lender but we'll be coming up on living here for 2 years so we should be ok renting it out. Anyone ever heard of that primary residence requirement being longer than 2 years? Since this will be our first renting go around and we absolutely LOVE our house (legit dream house) does anyone have any advice on screening tenants or advice in general for first timers to renting out? Also does anyone see any flaws in this plan to start out? This is a HUGE leap of faith for us and we're both a bit worried. Thanks for any help you can provide!

[Greg H.]

@Nick Causa

If I were in your shoes with the same thought process, I would sell the property and not rent it because:

-You have the opportunity to sell and the gain will be free of capital gains once you hit the 2 yr mark

-The more important reason is you have indicated this is/was your dream home.  The home is personal to you. NO tenant, not even the best of them will treat your dream house the way that you did.  From not mowing the yard to trimming the shrubs, to the scratches on the walls to the oil stains on the driveway are going to drive you crazy.  "How dare they treat our dream house that way!"

Obviously, I am a big proponent of investment properties but to be successful you have to be detached from the process.  At some level, an investment property is no different from a stock but in your case.  This home is personal to you and your wife but it will not be to your tenant.  Unless you can detach yourself from the process, I would not pursue this