Sell Your Current Home to Buy 2 Houses
Turning your home into an investment property is one of the best ways to generate extra income. Most people already own a house that’s gaining value and could provide them with a lot of money.
We’ll explain why investing in the real estate market is a good idea and how you can make the most of it.
The Benefits of an Investment Property
Real estate appreciates over time and depending on where the house is located, you’ll benefit from the property’s appreciation, plus the rental income. But this isn’t all, there are many advantages to owning an investment property. Let’s explore three of them.
Being a Landlord is a Great Opportunity
Being a landlord is a short-term path to long-term wealth and financial stability. In this case, you could buy a smaller house to rent and purchase a bigger one for your family that suits your needs and desires. Also, you could use the money to fully pay one property and the down payment of the other.
Depending on your circumstances, you’ll know how to use the money accordingly. Besides, you can request a bank loan to cover the majority of expenses and your tenants will be the ones paying the mortgage. You will even have the opportunity to use the rent’s profits to repay the loan faster.
Benefit from Additional Income
Extra income is the greatest benefit of owning an investment property. Commonly, the rental income exceeds the property’s holding expenses – taxes, insurance, repairs, and maintenance – and financing cost. You’ll receive a monthly payment as long as the property is occupied and your tenant pays on time.
How to Choose the Right Tenant
Good tenants pay on time, take care of your property, and make your rental property business more successful. Follow this checklist when choosing a tenant:
- Verify your potential tenants’ credit information
- Perform a criminal background check
- Ask for previous landlords’ recommendations
Choose someone stable. Look for their previous addresses and employment history because if they move often from one place to another, they’ll continue this pattern. Moreover, allow a maximum of two people per bedroom. The more people, the greater the wear and tear in your property.
Great Way to Save for Retirement
Almost no one can retire comfortably by relying on social security income and it takes a lot of time to benefit from it. With an investment property, you’ll be able to save enough for a good retirement plan or you could even retire early.
Typically, these properties allow you to make a profit every month after the bills are paid. So, it’s important to purchase the new house at a reasonable price and secure your financing.
How to Sell Your House While Buying Another One at the Same Time
When you decide to start in the real estate business by selling your house, purchasing another, and becoming a landlord, things can get complicated. Here are some tips to help you manage the process successfully.
Consider Your Financial Position
Suddenly, you could find yourself without the funds to close your next home and end up paying two mortgages for an extended period. And, in the worst-case scenario, not getting the final approval for a mortgage and potentially losing your new home.
When buying two properties, you should have the capacity to handle two mortgages and if you don’t, you can include a contingency in the buying-offer to have an escape route in case your house’s sale fails.
Negotiate the Timeline and the Money
The closing process is key when negotiating two properties at the same time. The goal is to get both the buyer of your home and the seller of your next home to agree to the closing timeline and any necessary contingencies.
Contact a Home Buying Company
No matter how carefully you have planned to buy and sell houses at the same time, transactions might fail or not go as planned, especially when working with financial institutions. For this reason, many homeowners have decided to contact home buyers to sell their property as soon as possible.
How the Process Works
- Fill out a quick survey on the home buyer’s website to provide basic information about the property.
- If the house meets their criteria. They’ll contact you to set up a quick appointment.
- Usually, they provide a fair cash offer within 24 hours.
- Close the deal at a local reputable title company.
How To Sell My House Fast in Milwaukee
Selling your home has never been easier with the help of Captain Save a Home. We buy houses in Milwaukee and provide you with cash in just seven days after the deal is close. You won’t experience issues with the contract’s timeline and money, and you’ll be able to purchase and sell at the same time.