All Forum Posts by: Peter Jindra

I recently purchased a home with the intention of turning it into a rental in the next 1-3 years. I plan to ideally keep the property as a long-term rental, but I'm aware that by the time I'm ready to rent it out, it's very possible the value of the home will have dropped, since the price of the home is likely inflated somewhat due the current market. 

If I rented it out today, I estimate I'd cashflow even or slightly positive to start, but of course I'm worried that I won't get as much per month in say, a year and a half. I've tried googling some historical data on rent prices and it seems that they stayed steady, even during 2008-2009. 

Can someone with more experience give me some insight on this or provide resources that will give me a better idea? Thanks.

@David Pere ah no, that was Kamil who mentioned using a VA loan, I don't qualify for a VA loan, and will likely be using a conventional loan with 5-10% down, so I assume I would have PMI.

@David Pere @Kamil Baldyga Thanks for the answers, that's great news! I thought I had heard something about having mortgage insurance preventing you from renting out, but I guess I was mistaken. And I will absolutely check on any stipulations when speaking with lenders.

Currently renting an apartment and am strongly considering buying a house in the next year, with the plan of living in it for 1-3 years, and then turning it into a rental. By the time I am ready to buy, I won't have enough for 20% down payment on a house that I'd want, and would probably have to save up for another year. 

I would be comfortable taking out a loan with less than 20% down payment, although, I thought I remember hearing that there are restrictions on renting out a home with less than 20% equity, but now I can't seem to find the answer from googling.

So my question is: Can I eventually rent out a house if I don't yet have 20% equity in it? If not, are there any creative solutions to getting around this, or should I save up for a higher down payment that's at least close to 20%, so I can rent after a year or two?