How to Rent Out Your House (Step-by-Step Guide)
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- čas přidán 9. 07. 2024
- Episode #872
So, you want to know how to rent your house out. Maybe you’re upsizing or downsizing, moving away for work, or just want to buy another primary residence and take advantage of low-money down loans. Whatever your reason, renting out your primary home can be a phenomenal way to get into the real estate investing game. You’ll make passive income, all while holding on to the equity in your home and appreciation potential. So, how do you start?
David, Henry, and Rob are all on the show today to give you a step-by-step guide to turning your primary residence into a rental property. Hundreds of properties have been owned between these three investing experts, and all of them have turned their primary residences into rental properties multiple times. But before you rent out your home, you’ll need to know if your home is even rentable.
We’ll tell you exactly what you need to know to decide whether or not your home would make a good rental, how to make the most money possible off your home with affordable finishes, added amenities, and upgrades, how to decrease your liability and keep your property safe, insuring your rental, screening tenants, collecting rent, and more. If you’re a beginner landlord or are renting out your home for the first time, you CANNOT miss this.
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How To Rent Your House: A Step-By-Step Guide:
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Show notes at: link.chtbl.com/BPRE
00:00 Intro
01:46 Will Your House Work?
05:22 Look at Rental Comps
07:45 Buy in THESE Areas
11:07 Amenities and Finishes to Add
16:37 Decreasing Your Liability
20:06 Get (the Right) Insurance
22:52 Screen Tenants
28:53 Collect Rent
30:31 Tax Benefits to Take Advantage Of
33:07 What to AVOID
We did this for the first time this year. Biggest adjustment was having to repair old house, purchase new house, quick repair new house and float the first 1-2 months or two mortgages,
That is what we are planning but will be moving out of state.
And it is a bit overwhelming
@@Love4puppies it was stressful especially over the holidays and having a baby but now it feels like things are regulating. You can do it, just take all the precautions you can.
@@derricklopez2054Thank you! I really appreciate it! That reassurance always helps. Sometimes it's hard because of people saying why are you buying when you have a great rate and low mortgage and going to have higher expenses. But if taking on more expensive temporarily for the health of your family makes sense, then I think it is worth it. Nevertheless, it is nice to know that others have felt the same way, and it all worked out. Congratulations to you and your family and thanks for the support and encouragement:)
I can’t get over how many times Rob has referred to flour as a spice 🤣
I'm starting the process of renting my primary home and this was extremely helpful. I've taken lots of notes I didn't think about before this video!
This was an amazing video very helpful and insightful. I only wish they maybe would of touched on some advise for structuring a solid lease agreement
You didn't mention the loss of the homestead tax cut. If I rent out the main house and live in the back, what are those tax implications, both homestead and depreciation wise? You have to choose one?🤔
Great timing! I am considering doing just this!
Thank you for this helpful video!
Love the Chick-fil-A reference
#1 podcast
Thank you great video
Thanks for sharing
I really appreciate the straightforward presentation and usefulness of this information. You guys have a great show. I was considering renting my primary home and moving around a bit (wife and I are recently retired) but our primary has a pool. After watching this show and getting real about my own risk tolerance I've decided against it.
Great video, thank you! I’m planning to rent out my primary house of last 2yrs in next couple of months, do you recommend renting it furnished or non furnished for long term? Please advice your opinion 🙏🏻
David ended the show by talking about buying a primary residence with a low down payment loan, requiring less money for the deal. Only question I have is if the interest rate is a little high, and you want to refinance in the future, would it be a better idea to have more down to cover if the house doesn’t appraise as high during these high home prices we are still having. For example, my house goes down in value 10,000 in the next year and I try to refinance with my little equity since I put a low down payment down, and I need cash to close the deal. Suggest waiting out the interest rate refinance until there’s more in the home?
If an area doesn't allow you to rent out your property long or short term, maybe you should sue and get it overturned. It is your property.
Blessings 💐💐💐💐💐💐💐
🙌🏾🙌🏾🙌🏾
Henry sounds a lot like Giancarlo Esposito. Is like having Gus Fring from Breaking bad or Stan Edgar from The Boyz talking real estate.
Henry? Your kids are going to BOND with that house.
We paid off our home last year in June. So we have about 400k in equity in the house. The plan is to hack a 4plex this year. My question is will a Hloc affect my DTI and the amount of 4plex I can qualify for?
My understanding is yes it will but heloc are split up into the draw period and repayment period. A typical example is a 5 year draw 15 year repayment. During the draw period your monthly debt obligation is only the interest on the amount rather than during the repayment period both the interest and the principal affect your DTI. So if you were to get the HELOC, then use it as the down payment on the 4-plex, the loan you get for the 4-plex would only consider the interest on your heloc for your DTI. Double check this with the lenders you use for your HELOC and your 4-plex mortgage but this is my understanding
Can't you go conventional and add the rents to your income ?
@@legacyopp9318this is the way - much better interest rate.
how many people actually put the correct reference of a prior landlord ?
Minimum credit score 700, NO FELONIES PERIOD! 2.5 times rent MINIMUM, Employer and ex landlords called. ANYBODY ELSE OK.
I totally agree. The 600 credit score will bite you
@@legacyopp9318 The 700 will not. Never has or will.
What metric do you use for credit score?
There is equfax, TransUnion,experian.
I noticed that kredit karma shows a 740 FICO as a 680.
2:30 how are they legally allowed to tell you what you can do with YOUR PROPERTY?? I understand external modifications but internal? that cant be legal
regarding renting it out*** POA/HOA can infringe upon that?
Is this the same as house hacking?
I hope to find someone who will rent my house for a year for $2,400. It is a small house and the roof can see the Nile
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
WE DONT LOVE THEM HOMES lmao
Wooden decks are desperately overrated.
Can't trust an inspector from the realtor. Get a good handyman for a second opinion that has eyes you don't.
If they didnt budget for their medical bills they wont budget for their rent. Minimum credit score always.