You may have decided to rent out your property for many different reasons such as: using it as an investment, unable to sell your home or would lose too much if you did, or moving out of state and will no longer be living in the home. You may have decided to manage this property on your own, or have a rental agency manage the property for you. If you are planning on buying a house and turning it into rental property, below is a great mindset to have when doing so.
Let’s say you buy a house with a 30 year mortgage, but pay more than the minimum payment every month. After about 5-6 years you decide to rent it out. By this point you likely have paid off enough of the principal to be able to rent it out and make money or cover your expenses. Then you are likely able to purchase another home, live in it and continue the process.
Having this mindset will help you purchase a rental property and keep the process going for purchasing future rental properties. The main thing to keep in mind is to be up to date on what rent prices are for your type of property. If the numbers work out, keep buying and renting properties as they are excellent investments, especially considering with how volatile the stock market is in today’s economy.