Keeping First Home as Rental While Upgrading To A New House

[Gregory Heddaeus]

Hello,

This is my first time posting as I am new to this site.

I am currently searching for a new house and I am trying to work it out so that I can keep my current single family house which is in a good rental area while still buying my wife the house she needs for our growing family.

What are the restrictions?
Do I have to notify my current mortgage company of my change in use?
I also own a small real estate business with a partner and I thought of transferring the house into the companies name? Will my mortgage company require me to acquire a new loan in the companies name and pay my loan off in full? Can they simply transfer the title and current loan into the companies name?
Are there closing costs associated with any of these options?
Do I have to have the new tenants moved in before I can finalize my loan on the new house?

I appreciate any feedback. More questions to come as I advance through the process.

[Gregory Heddaeus]

Michael,

How much did my wife pay you for the last paragraph?

I appreciate the response and the honesty. Truthfully I cannot cover both payments long term only due to the fact that the existing home has a 15 year mortgage and therefor a higher mortgage payment.

Selling is still on the table.

I have owned a duplex which I have managed and renovated myself for the past 5 years. I have also updated my single family home significantly and was hoping to hold on until home prices rose a little more in the area. Specifically I would want to hold the single family for 3 more years so that I can still claim that I lived there for 2 out of the last 5 and not have to pay capital gains.

I know the home values could go up or down but having a tenant pay the mortgage for the next three years will increase my equity until the selling point. At which time I would then have enough cash reserves to reinvest into another multi-unit rental.

Thoughts?