Are you a homeowner interested in moving to a different home, in earning some extra income through real estate, or having difficulty selling your current home? If so, you may want to consider turning your current home into a rental property. If you are interested in learning more about your options as a homeowner in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can help. Read on to learn more about transforming your current property into a rental.
Turning Your Current Home Into a Rental Property
When relocating, many homeowners use the equity from their previous home to help afford the purchase of their new property, however, it is possible to convert your primary residence into a rental property instead. This can be advantageous because it can increase your monthly income and if the real estate market happens to be low, you can postpone selling the home and rent it out to help you afford mortgage payments on another property, and wait to sell the home until the value has increased. If you are planning to rent out your current residence and still owe money on the mortgage, there are some factors you will need to consider before renting out the home. When you initially obtained the mortgage, you were required to occupy the home as your primary residence for a specified amount of time depending on your contract, which typically is for 1 to 2 years. You will want to review the terms of your mortgage before you rent out the home in order to ensure that you have lived on the property for the required amount of time to avoid mortgage fraud. You will also want to ensure that you are able to afford to finance a new property and that you qualify for another mortgage before renting out your current property.
What Are the Advantages of Turning My Property Into a Rental?
Turning your current home into a rental property can be a worthwhile investment that offers many benefits. It can serve as a great source of supplemental income, and a homeowner can use the money they receive from renting out the home to help pay off the mortgage. If a homeowner is trying to sell the home and not receiving their desired offer amount, they can rent the home out instead and postpone the home sale until a better price is offered. Renting out a property also could allow a homeowner to qualify for certain tax deductions.
Get Mortgage Assistance When Turning Your Home Into a Rental Property
If you are able to meet certain requirements, you may be able to make a profit by turning your current home into a rental investment. If you are interested in your real estate options in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today for a consultation.
