Jun
28
I want to rent out my small house and rent something bigger, not sure how to go about it? need finance advice?
By
I cant afford to buy bigger house, but need more room for growing family. Only thought is to rent my house out and rent a bigger house. Have heard there is benifits of being able to claim on renovations to my house when its rented. But what about it also being another income. Would i really be better off? dont know who to ask??
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2 Comments
June 28th, 2010 at 3:12 pm
I’m going to assume you are in the U.S. – The first thing you must do is secure a lease from a prospective tenant on your existing little house. Meanwhile keep your eyes open for homes that are being offered for rent so that once you have your own tenant you can then make the move. Depending on where you are though you may be able to qualify for purchasing a house as mortgage lenders usually look at a signed lease as that particular debt being relieved from you so it opens up some possibilities for you possibly to buy. Try to get 20% more than your current mortgage payment if possible. In other words if your monthly mortgage payment is $1,000 per month, then try to get $1200. Talk with a lender in your area about these possibilities. If you are in PA let me know and I can steer you toward some people! You can check out my website at if you need to get in touch.
July 1st, 2010 at 8:21 am
If you sell your home and it has been your homestead for several years—you don’t have to pay income tax on the profit!
If you have made $100,000 in profit then you turn around and rent that house for several years and then sell it, you will have to pay tax on the entire amount…including the $100,000 in profit you made while you lived there.
I wouldn’t rent my homestead out and walk away from tax free profit! Talk you your tax guy before you do this.