Have you outgrown your existing home? In this video we will talk about what your options are, specifically talking about buying a new home and renting out your existing one.
Recently my son and daughter-in-law outgrew their existing townhouse. They originally bought the home when they were in their early twenties and it worked great for just the two of them.
Then a grandbaby came! When my grandson Cooper came along, it forced my son to move his business from the spare bedroom into a real office Downtown. They needed a room for the newborn! For right at 3 years they made the townhouse work but each day they began to feel the seams busting on the home.
Another Baby! Another Challenge!
My daughter-in-law is currently pregnant! Which means their 2 bedroom townhouse will no longer work. It’s already been tight with the 3 of them, but adding a fourth (and the current layout of the home) will just make it tighter. So…they opted to buy a new home.
Unfortunately they are not in the position to sell their townhouse. The would barely break even so it doesn’t make smart financial sense to get rid of it. FORTUNATELY, they have been really good with their money and have no debt except for the home. This helped tremendously when qualifying for a new home while keeping their existing one.
Good Tenants and Building An Investment Portfolio
Luckily for my son, his brother was needing a new place to rent. The townhouse was perfect for my son Brandon and his two kids…Kameron and Bama (his dog)!
Brandon is a good tenant because he will pay on time, has a good job and will take care of the place as if it were his own. This helps my son Jared and his wife pay the mortgage on the townhouse and not have to worry about 2 payments.
Additionally, it helps them pay down the note on the townhouse so that hopefully in a few more years they could easily sell the townhouse and make a profit. And if they choose to keep the townhouse, it’s just more rental income!
Sometimes there is a great risk with keeping 2 homes with 2 payments, but it’s a great start to building your investment portfolio!
I hope you enjoy this little tip! Shoot me an email or comment on Facebook if you have any questions about buying your next investment property!