First Time Landlord: Buying a New Primary & Renting Old One

[Justin Panariello]

Hi everyone! I bought my first house 3 years ago and recently my wife and I got preapproved at an awesome rate and want to take advantage of it. We just went under contract TODAY on what will be our second house. I really want to keep the first house as a rental, tho the interest rate is absolutely terrible, we’ve been over paying on it and have just over 10yrs paid off. I’d like to keep it, pay it off and get free and clear cash flow in the future. We’re in California and I’m kinda scared of making a mistake when renting it out....it’s my first time, and CA is not known to be landlord friendly. Does anyone have any tips or things I should know or do, especially CA people?? I really appreciate it!

I'm considering looking at property managers but am open to self managing. Because of the interest rate there probably won't be too much room for cash flow, but as long as the mortgage is paid by someone else I'm happy with that for now, plus the experience. It's not in an LLC but I'm considering bulking up insurance in leu of.