Converting a property to a rental

[Monty Lopez]

Hello everyone,

Stupid question.

Newbie here, I think I got myself in a pickle. I currently have my first home cosigned with a parent. Its a detached 3 bed 2 bath bungalow in Calgary, Alberta. Long story short: they live there and I do not.

What are my courses of action here?

I got it when I was younger and did not know about real estate. I am currently renting in Edmonton but I am also paying a portion of the mortgage there. I have had a discussion with them and they were fine with me turning it to a rental. I am just not sure if I could still get tax benefits from it. Because I really want to take advantage of the fact that I have something to start with for cashflow. 

I called the bank about it and I could not really get a clear answer.

Any input would be greatly appreciated.

Thanks everyone!

[Milo Milosovic]

@Monty Lopez I agree with @Zorya Belanger you should contact an accountant and maybe an investor savy mortgage broker regarding who can be considered a “tenant”. There are far more important points to focus on in creating any wealth with real estate than just tax benefits. I would also caution regarding telling a lender that the property you are buying is owner occupied if that is not the intent. There are some pretty strong laws around this.