Turning your home into a rental lets you keep your low mortgage rate while making extra cash.

Are you thinking about moving but don’t want to give up your low mortgage rate? A lot of homeowners feel the same way. But what if I tell you there’s a smart way to move without selling your home? And that is to turn your current home into a rental! Here are three easy steps to help you get started:

Step 1: Figure out what your home can rent for. The first step is knowing how much your home could bring in as a rental. Right now, rental prices have stabilized after a recent drop. This makes it a great time to see what similar homes in your area are renting for. Doing this gives you a solid starting point and helps you set realistic expectations.

“Your rental income from your old house should cover most of the costs when moving to a new home. ”

Step 2: Will it cash flow? Once you know the rental price, the next step is figuring out if your home is guaranteed to make money each month. That involves looking at all the costs, like mortgage, taxes, insurance, and maintenance. Try to see what’s left over after those expenses. The goal is to have a positive cash flow, where your rental income covers all the costs and still leaves you with extra money in your pocket.

Step 3: Put that extra cash toward your new home. If your home rents well, that profit can go straight toward your next place. Many homes right now are earning over $1,000 a month after all expenses. This can make a big difference when upgrading to a home that fits your needs better today.

Keeping your current home as a rental could be a great way to build long-term wealth while making your next move more affordable. If this strategy makes sense to you, I’d love to go over your plans. Give me a call at 480-267-9368. I’m happy to help!