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Rental Property Question

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scoobyd
New Member

Rental Property Question

I currently live in Florida and because of all of the short sales in my area I am considering buying a single family home for $50,000 to use as a rental property when I relocate to Colorado in about a year.  If in approximately two years I go to buy a primary residence in CO will the mortgage on the rental property affect me negatively when trying to get another mortgage even if I have a renter in place?

I have no mortgage currently and really have no experience with owning two homes at once.  Any help is appreciated.  Thanks!

Message Edited by scoobyd on 08-21-2009 08:29 PM
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1 REPLY 1
Anonymous
Not applicable

Re: Rental Property Question

Make sure you keep very solid records (copies of all reciepts, tax returns, and copies of leases/rent checks.)  That helps.  2 years of rental history and proper recordswill help.  Just remember that when you write off alot of expenses against income from the rental, it will reduce the "income" you are getting from the house.

 

Also, make sure you are comfortable having a rental so far away.  The rental income and future proprty value of a 50K home right now would unlikely be worth the cross country management and upkeep, as well as the liability with you being unable to keep tabs on the place.

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