Renting out my first home

[Billy Rowe]

Quick question, (Still learning still have a far way to go)

Ok If I were to rent the house I'm living in now, do I have to change anything with my current mortgage. In other words I pay approx 850 per month on my house (that includes a escrow for tax's and insurance). When we go to buy our new home, do I just carry on with my current mortgage, or do i have to make some sort of adjustments to it because im now renting it out? What the plan is, is for me to rent it out for 1300 per month (houses are renting for that much in my neighborhood), and continuing to pay my 850 mortgage that includes the tax/insurance cost. I would factor in 100 per month for maintenance and 10% for a property manager 130 per month. What other factors am I missing? by my math Ill have 220 per month in my pocket which doesn't seem like alot but it is paying my mortgage so that I can keep the property. I know there are probably more holes in my plan than Swiss cheese, but do I have the gist of it down?

Thanks!! and thanks for all the info!!!

[Ali Boone]

Yep, you're good to go! No changes to the mortgage, but definitely let your insurance company know so they can make any changes they need to, if any. I'd also ask about an umbrella policy to cover major liabilities. Super cheap policies, and well worth it.

And $220 in today's market is great cash flow!