Updated about 7 years ago on . Most recent reply
Buying a second home - renting the first
MY wife and I have lived in our house for almost 2 years. We saw a home for sale a few days ago that caught our attention and we are considering the idea of moving but trying to keep our current home to rent. I believe we could qualify for doing so but I had a few concerns that I wanted to get some advice on.
Our mortgage is $910. A house right around the corner from us rents for $1100, but it is a good bit smaller. We are in an area where there are several apartment communities and townhomes and rental properties. My question is how much margin does there need to be between mortgage payment and rent? I feel like it would be hard to find a renter above $1250 or $1300. Another question I have is should I pay for the utilities or have the renter do that? The average bill for water/electricity/sewer and garbage is between $150-$160 per month.
I'm worries that with such a small margin between rent and mortgage that it may not be worth it. Granted all of the big items have been replaced since we bought our home. HVAC, Water Heater, all new appliances, remodeled bathroom. So I don't expect any big expenditures or repairs. But my MAIN concern really is to include utilities in rent or no?
What do you guys suggest?