🏡 What if your current home could help pay for your next one? 👀
Most people think about selling when they’re ready to move. But depending on the numbers, keeping your home as a rental could be another option!
Let’s look at two examples. 👇🏽
🏡 Scenario 1: You’re ready for more space.
You bought your first home a few years ago, and now your family needs room to grow.
Let’s say your home rents for $2,200/month, and your monthly mortgage, taxes, insurance, and other regular ownership costs total $1,900.
That leaves a potential $300/month surplus before any additional expenses not already included.
🏡 Scenario 2: You’ve owned your home for years.
Maybe you’ve been in your home for 8, 10, or even 15 years. Your mortgage balance may be lower, and you’re ready for a new chapter.
Let’s say your home rents for $2,400/month, and your monthly ownership costs total $1,700.
That leaves a potential $700/month surplus before any additional expenses not already included.
Depending on your situation, that income could help offset some of the cost of your next home’s mortgage while you continue building equity in both properties.
Of course, these are hypothetical examples, not guaranteed profits. Vacancies, repairs, maintenance, property management, and other costs can affect your actual cash flow. You also need a plan for your next down payment and closing costs and to qualify for the new mortgage.
The point? You may have more options than you think! Your next move doesn’t always have to mean letting go of your current home.
👇🏽 Let’s talk! If you could make the numbers work, would you keep your current home as a rental or sell it and use the equity toward your next home?
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