Seeking stories - moving out and renting my own home.

[Neal Stanfield]

I’m moving out of my home and would love some advice about turning it into a rental. My goal is monthly cash flow. I have the capital to buy another home for us to live in, I don’t need the equity out of this home.

- do I first get renters in before I buy a new home or does it not make a difference (I can just go live in an Airbnb until I find renters and identify a new home to buy)?

- should I hire an attorney to get paperwork/contracts in place.

- advertising it (Zillow enough?)

- do I need to change my loan so it is under my business Llc?

- best practices?

- hire a management company or not?

The numbers:

- 4b/4b (+ two rooms in the finished basement).

- 3,600 sq ft (included basement)

- mortgage and insurance monthly costs: $2300

- monthly rents in my area for similar home size: $3,100

-

[Chris Bounds]

Unsolicited advice, but consider the tax implications with this.

You may be able to take capital gains tax free from your personal residence.

If you rent it out for certain period of time that benefit goes away.

Consider taking the capital gains to buy separate rental property.

Either way, definitely use a PM or Realtor if it's your first rental to get the proper background checks, paperwork, and highest quality tenant.