by aaron@inhabitdenver.com | May 27, 2015 | Market Information
In my previous post I addressed how to take advantage of the market by selling your existing house and negotiating the best terms possible and getting enough time to stay in your house after closing until you find and purchase your replacement home, only having to move once, out of your existing home and into a new home. In Part 2 of this article I will be discussing how to purchase a new home and get a acquire a rental at the same time… Many of us have thought about having rental properties, but getting to that point seems daunting. Why not make your current house a rental property? Most “starter” homes make great rental properties. Why? The answer is that you probably didn’t spend a ton of money on it ( less than 300K) and for a 3 bed/2 ba home in the current Denver rental market you could get about $2000 – $2300 a month, possibly more depending on the location. Lenders will allow you to claim the rental income from your current home before you even rent it out with some stipulations. If you can qualify without that ie. you can carry 2 mortgages then don’t worry about this but here is a creative approach to making this happen if you can’t. Lenders will allow you to claim the rental income on your current place if you have 30% equity based on an appraisal and they will allow 75% of your the rental income to be counted as additional income to offset the debt of the mortgage. For example. You paid $250,000 for your house, with...
