"I'll keep my low rate, thanks" Pt 2

Previously, in Part 1, I mentioned the idea of hanging onto your current low rate and using it to your benefit by turning your home into a rental. You can read that article HERE

As I was working on getting the thoughts out of my head, I came across an article on Fortune.com talking about this same concept.

Let’s dig in. Rent is always going up, but has increased considerably over the past few years. At the time when you locked in your low interest rate, most rents were a decent amount higher than a mortgage would have been. I’m willing to bet todays rents would cover your mortgage plus quite a bit extra…giving you a nice chunk of cash every month.

Don’t want to be a landlord? Hire a manager and let them take care of everything.

Want your money back out of the house? Sell within 3 years and you don’t have to pay any capital gains on the appreciation ($250k for individuals, $500k for married couples).

So, to summarize, you get to enjoy cash flow in your pocket every month from rents, plus you get additional gain from the appreciation of the home which could be about 4-7% annually.

If you’re on the fence about moving and don’t like the idea of the increased interest rate on your next purchase, this is a great tool to offset that jump in your mortgage payment.

Let’s talk if this sounds intriguing and we can apply to your specific situation.

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