I’m moving out of the house soon and will be living rent-free with my wife at my parents' place in the Bay Area due to some recent life changes.Here’s a breakdown of my situation:Location: Sacramento, CA (4 bed, 2 bath, recently renovated)Current mortgage payment: $3,940/month (including escrow)Mortgage balance: $475,000Current home value: $515,000 - $535,000 (based on comps)Rental estimate: Property management companies are quoting $2,600/month (with fridge/washer/dryer included), but some websites suggest it could go for up to $3,000/month.Planned budget:$540/month for capital expenditures and maintenance$100/month for lawn careTenant to cover utilities (gas, electricity, water)7.5% vacancy rateWe bought the house thinking it would be our forever home, but with our current situation, I’m trying to figure out the best long-term plan.

This would increase the property’s value to about $608,000, and you could look at an 80% loan-to-value refinance, which should give you enough to cover most, if not all, of the remaining balance.This structure allows you to minimize upfront costs and take advantage of property appreciation over time.

Even if your tenant isn't covering your entire mortgage or rent...that's still money youre not spending on bills right?

Because two things: first, if you can't save enough money to make a down payment on an investment property, you shouldn't even be in this game, and second you are going to need cash reserves to cover the infinity of things that can go wrong on a rental, which means you should already have some free cash flow coming in from somewhere to account for that before you even rent the place out.

Your first is already risky enough since you lack experience, combine that with 100% funding and the risk is through the roof.

I tried to estimate what a GC might cost in my calculations, but I have an uncle who does roofing and cousins with window installation and landscaping businesses, so I believe I can save some significant costs through their help and guidance. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Your HOA will likely keep increasing and because of the excessive heat, roofs get replaced more than in other areas and if the HOA is not super liquid, that will come back to you in the form of an assessment.

We have also found our that the sellers lied on their disclosure of what they knew about the hail damage to roof.

We keep everyone in the loop all throughout the process.To stay on track, we maintain a comprehensive checklist that covers all the tasks involved in closing a deal.