Self Help

Turning your current home into a rental property when you move is a simple way to buy and own more properties. This approach is an option if you’re already considering investing in real estate (either now or in the future), and you can afford to own two properties.

Holding onto your current home when you’re buying a new one is more advisable if you’re moving within the same area, so that you’re close by to manage the property. This approach presents a number of positives:

1. You save the time and cost of finding a separate rental property, not to mention the associated transaction costs.
2. You know the property and have probably taken good care of it and perhaps made some improvements.
3. You know the target market because the house appealed to you.

Some people unfortunately make the mistake of holding onto their current home for the wrong reasons when they buy another. This situation often happens when homeowners must sell their homes in a depressed market.

Nobody likes to lose money and sell their home for less than they paid for it. Thus, some owners hold onto their homes until prices recover. If you plan to move and want to keep your current home as a long-term investment property, you can. But turning your home into a short-term rental is usually a bad move.