How can I turn my primary residence into a rental property?

I bought a home during covid and got a killer interest rate that I never want to get rid of, but my wife and I outgrew this home much faster than expected. We want to move and don’t want to get rid of our current property, but don’t know what our best options are for tapping into our equity, and what the lending requirements are like for a second property.

Estimated value of our current home is $495k, we owe $350k. Identical units in our neighborhood are renting out for $2500/m. We are targeting homes in the $800k – $850k range. Household income is $210k. We have $40k set aside in savings that we’ve designated as money towards our second home.

Is it feasible for us to move out and turn our primary home into a rental property? Would we have difficulty getting approved? Would I need a lease already signed to help offset the payment on our first mortgage?

submitted by /u/Bynnh0j
[link] [comments]

I bought a home during covid and got a killer interest rate that I never want to get rid of, but my wife and I outgrew this home much faster than expected. We want to move and don’t want to get rid of our current property, but don’t know what our best options are for tapping into our equity, and what the lending requirements are like for a second property. Estimated value of our current home is $495k, we owe $350k. Identical units in our neighborhood are renting out for $2500/m. We are targeting homes in the $800k – $850k range. Household income is $210k. We have $40k set aside in savings that we’ve designated as money towards our second home. Is it feasible for us to move out and turn our primary home into a rental property? Would we have difficulty getting approved? Would I need a lease already signed to help offset the payment on our first mortgage? submitted by /u/Bynnh0j [link] [comments]

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