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Undefinabl3
Member
Member # 36883
Default  Posted: 11:57 AM, July 30th (Tuesday)

So, DH and I have been looking at our forever home property...and we have found 3 different places that are already set up for horses.

But, we can't really sell our house right now because we are in a bit of litigation over the HOA.

DH actually would like to keep it and have it as a Rental (the area is nice and its a pretty nice house, but it wont go for what we want right now).

How does one go about buy what would become our residental home, and keep the other as a rental?

Is it hard?


Me: 31 MH
Him: 37 MH
~Some days are better then others~

Posts: 1617 | Registered: Sep 2012
Amazonia
Member
Member # 32810
Default  Posted: 12:00 PM, July 30th (Tuesday)

Does your HOA allow for it? Since you've already got ongoing litigation with them, I'd start by making sure you're allowed!


"You yourself deserve your love and affection as much as anybody in the universe." -Buddha
"Let's face it, life is a crap shoot." -Sad in AZ

Posts: 13201 | Registered: Jul 2011
Undefinabl3
Member
Member # 36883
Default  Posted: 12:15 PM, July 30th (Tuesday)

There's nothing in the covanents about no rentals. There are 2 houses being rented out right now.

The litigation is more to do with the fact that when we bought the house, we bought it under the pretext that there wasnt an HOA. We are suing our realtor company and possibly the sellers, but we are not sure yet.

I was more interested in the idea of what do you need to have/do to buy a second home, that woudl become the primary home.


Me: 31 MH
Him: 37 MH
~Some days are better then others~

Posts: 1617 | Registered: Sep 2012
Rebreather
Member
Member # 30817
Default  Posted: 12:56 PM, July 30th (Tuesday)

Nothing. You just need money. lol


Me BS
Him WH
2 ddays in '07
Recovering.
"The cure for the pain, is the pain." -Rumi

Posts: 5861 | Registered: Jan 2011
Amazonia
Member
Member # 32810
Default  Posted: 2:13 PM, July 30th (Tuesday)

I don't know much about purchasing, besides the fact that you do need the money or the ability to qualify for a mortgage, but I've done private rentals from two couples (well, two in the US; two more living abroad, but that was totally different), and I would recommend working with an attorney to draw up a lease agreement, spell out who cares for what, etc. and keep enough flexible money on hand to handle any repairs at the rental/investment property very promptly. There are also companies you can hire to act as "landlord" on your behalf so you don't personally have to deal with calling a plumber when the drains clog, etc.


"You yourself deserve your love and affection as much as anybody in the universe." -Buddha
"Let's face it, life is a crap shoot." -Sad in AZ

Posts: 13201 | Registered: Jul 2011
woundedwidow
Member
Member # 36869
Default  Posted: 4:37 PM, July 30th (Tuesday)

I have owned several homes that I turned into rentals after buying another home. You need to treat the entire propostition as a strictly business transaction, with no emotions attached to your "old" home. Run a credit AND a background check on all prospective tenants who have filled out your detailed rental application and passed your basic qualification standards. Make sure that your lease agreement is detailed and covers ALL aspects of the rental. DO require your tenants to carry renter's insurance. Make sure that you change your homeowner's insurance to landlord's insurance to protect YOU as well as the property. Take high-quality digital photos of the home inside and out before the tenant moves in in case you have to dispute property damage, and require a substantial security deposit. Personally, I allowed pets; they tear up homes less than kids do and you have a non-refundable pet deposit. Plus, it really broadens your base of good tenants. And be sure to make yourself familiar with the IRS rules for rental income and expenses; they can help you out a LOT on your taxes, but you need to be careful with what you can deduct. And keep detailed records!


Be careful what you wish for the most - you may get it.

Posts: 333 | Registered: Sep 2012 | From: VA
Undefinabl3
Member
Member # 36883
Default  Posted: 7:00 AM, July 31st (Wednesday)

I am not so much looking for how to rent...We already have a contract, we have our account for background checks and stuff. That part is good.

I am more interested in the process of buying a home - while keeping the first home as a rental.

We love this one piece of property that we could keep horses on and it fits us. And honestly, with a few changes, it could easily become our forever home.

I just dont know how to buy a house, when you are already in a house with a mortage.


Me: 31 MH
Him: 37 MH
~Some days are better then others~

Posts: 1617 | Registered: Sep 2012
Lucky2HaveMe
Member
Member # 13333
Default  Posted: 8:19 AM, July 31st (Wednesday)

I would think it would be the same as buying any house - you would have to qualify for the 2nd mortgage. If you do, you get the loan. If not, you will have to rethink the idea.

Talk to a mortgage banker - they should be able to help you.


~L2HM~
Every Storm Runs out of Rain ~ Gary Allen

Posts: 5475 | Registered: Jan 2007 | From: WNY
woundedwidow
Member
Member # 36869
Default  Posted: 11:30 AM, July 31st (Wednesday)

If you already have a contract, that's great for your financing! First off, the mortgage company will count 80% of the monthly rent toward your income, and second, it proves that the home you will be buying will indeed be your primary home. This opens up the availability of financing options, unless you have a VA loan on your current home. Otherwise, purchasing is the same as any other home; you simply have to qualify financially for the new mortgage. Having the first home as a rental actually makes it easier, since you won't get charged a higher interest rate for a "second" home. Once you change your first home into a rental, it then becomes an investment property, and will be subject to capital gains when/if you sell it (which I'm sure you already know, btw.)


Be careful what you wish for the most - you may get it.

Posts: 333 | Registered: Sep 2012 | From: VA
trumanshow
Member
Member # 25624
Default  Posted: 1:13 PM, August 1st (Thursday)

I've had rentals since 1994 and I second everything WoundedWidow said


Your ex wanting to be friends is like asking a kidnapper to stay in touch when they let you go.

The type of fierce loyalty that I possess made me incapable of comprehending the level of disloyalty that he possessed


Posts: 1666 | Registered: Sep 2009 | From: Charlotte, NC
Topic Posts: 10