Investor Blogs Learn How to Buy a Second Home and Rent the First by Yoana Leusin March 12, 2018February 8, 2019 by Yoana Leusin March 12, 2018February 8, 2019 If you do not know how to buy a second home and rent the first, this blog is exactly what you need. Many people face the moment when they want to change their place of living, yet, are not ready to say goodbye to their first home. You can become a real estate investor by buying a new home and leasing out the previous one. However, there still stands the question: “How to buy a second home and rent the first?”. In this blog, we will tell when you should consider to remortgage. Additionally, we will talk about buying your second home and what you should do with your first real estate property. Last but not least, we will explore the ways to receive a rental income. So, are you interested in finding out how to buy a second home and rent the first? Keep on reading! #1 How to Buy a Second Home and Rent the First: Consider Remortgage to Buy a Second Home Nowadays, home prices are increasing dramatically and continuously. Due to this fact, it is getting harder to find suitable financing when buying investment property. Consequently, many real estate investors turn to the possibility for a remortgage when buying a second home. However, remorgaging does not suit every investor as mortgage is known as the biggest debt for any real estate investor. So, we will explain how to buy a second home and rent the first by describing how to remortgage to buy a second home. Before providing more in-depth information, let’s explore what remortgage actually means. Typically, remortgaging is the process when you, as a real estate investor, move your mortgage from one lender to another. Here are the two main reasons for considering remortgage: You should consider to remortgage to buy a second home when actually your lender refused to lend more money. Moreover, remortgaging to a new lender may actually be beneficial for you as you can receive money with lower interest rates. You should consider to remortgage when the value of your first home has increased. It might be the case that your real estate property’s value grew up since you received your first mortgage. Thus, you are in a lower loan-to-value. Consequently, you can remortgage and get more loan money for the current value of your property. This will help you in growing your real estate investing business. #2 How to Buy a Second Home and Rent the First: Buying Your Second Home Buying your second home or financing any investment property in general is not an easy thing to do. This is why we will focus on the main question: “How to buy a second home and rent the first?”. There are many types of real estate properties which you can choose from when buying your second home. Location is also of crucial importance not only when investing in real estate but also when buying your second home, the one you want to live in. However, you should know that finding and buying investment property might be tricky. So, here are some general tips to use when planning on buying investment property: A Real Estate AgentConsider hiring a real estate agent. This is extremely important, especially in the case you are not a professional real estate investor. Of course, you might visit open houses or check hundreds of online offers yourself. However, hiring a real estate agent can save you your search time as he/she will send you the list of properties that match your preferences. Moreover, he/she will know about new coming properties that are still not on the market. Another thing which is also greatly beneficial is using Mashvisor’s analysis tools to search for your new home. It will offer you many properties based on your needs and wants. It is considered a great tool that helps in real estate investing for beginners. Related: How to Find a Real Estate Agent for Buying the Best Investment Properties Home InspectionYou should also make a home inspection before buying investment property. Many property sellers will try to hide problems in order not to lower the property price. That is why actually visiting the place and exploring it might save you a lot of potential fixing and repairing costs. #3 How to Buy a Second Home And Rent the First: Turning Your First Home into a Rental Property As your main question is: “How to buy a second home and rent the first one?”, this section will not focus on buying your second home but learning how to transform your first home into a rental property. The first rule to keep in mind if you want to start making money in real estate soon is not only to come up with the best real estate investments but to also wisely choose the investment strategy. Basically, if your goal is to start making money in real estate on a frequent basis, becoming a landlord might be right strategy for you. Once you have decided that you are willing to lease your first home as a rental property, there are two rental strategies to consider: Traditional Rental StrategyOne of the best real estate investments of all times is a traditional rental property. This is a great strategy if you are planning to find tenants who want to rent your property for a long period of time. The benefit here is that you will be able to screen and get some background information on the tenants. Also, this rental strategy requires far less involvement from you side as a landlord. Moreover, with such types of real estate investments you ensure a constant flow of rental income. Related: The Best Places to Buy a Rental Property for Traditional Rental Income Short Term Rental StrategyAnother option, of course, is becoming a landlord for short term rentals. Therefore, one of the best real estate investments is seen as Airbnb rentals. If you choose a short term rental strategy, you will probably receive higher rental income per night. However, you will need to take a constant care of the rental property. Additionally, Airbnb rentals are only successful in specific areas, so you need to carefully research the local real estate market. Related: The Worst US Cities for Short Term Rentals Did you understand how to buy a second home and rent the first? Are you interested in learning more about real estate? Keep reading on Mashvisor as it can provide the answers to your real estate questions. Do not you worry if you are new to real estate investing. Mashvisor provides blogs about real estate investing for beginners. Start reading and welcome to the world of real estate! Don’t forget to sign up for the free 14-day trial here. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL GuidesRental Strategies 0 FacebookTwitterGoogle +PinterestLinkedin Yoana Leusin Yoana is an experienced content writer with a BA in leisure studies who enjoys giving tips to beginner real estate investors. Previous Post Why Is Buying a Duplex the Best Investment Strategy for a New Real Estate Investor? 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