Updated almost 5 years ago on . Most recent reply
Keeping First Home as Rental
Hello BP,
I'm not an investor yet, but my wife and I are considering holding on to our first home when we move to a bigger place and renting it out. When we move, we'll own the first house free and clear, but are considering taking out a mortgage on it for the downpayment of the new house. How would any of you think about this situation from a real estate investing perspective?
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Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
As long as your current house has positive cash flow after you refinance it, it's a great idea. It would mean the tenant of the rental property (your current home) is paying for both that house and the DP on your new home for you.