Utilizing your current home residency

[Alexander Reda]

Let me give you a little insight into my situation.

My house currently has a CHFA loan attached to it. I know I can't rent out my house unless I refinance out of this loan. So, I was thinking about refinancing to a 30 year fixed 3.5% which would reduce my loan about $100 less a month. I ran the numbers on the potential rent I could get after refinancing and sadly I would barely make $10 a month. That's after all expenses were accounted for. Then I started thinking.... what if I were to rent out my place with a lease option? I could then get a person in here with the intent to purchase my home which would incline them to treat this house like their own. I could minus the repairs (5%) from the expense sheet along with the PM expense (10%) as well,which would improve my monthly cash flow. I figure I should still account for Cap EX (5%). As of right now, I owe 190,000 on the house but zillow ( I know its just an estimation) has it estimated at 264k and that's not even including the additions I have added to the house i.e. fenced in back yard for privacy, 20'x20' stone patio in the back, and expanded the driveway from a single to a double parking spot replacing the asphalt with concrete. I need some expert advice on what I should do or better yet, what would you do if you were in my situation? 

I haven't done any deals yet but I'm very motivated to get the ball rolling. I'm trying to utilize what I already own to get things going!

I should also note that I take care of this house. No major repairs and the expenses are minimal.

Thank you for the replies!!