Keep your house as a rental by converting your primary residence into an investment property

August 2, 2022 in Blog, Mortgage Loans, Real Estate

Let’s say you bought your house two years ago with an incredible interest rate or you refinanced when interest rates were at an all-time low. But your family is growing and you want to make a move. Do you feel stuck? What if there was another option? Have you thought of converting your primary residence into an investment property?

This is an option that people forget to look at when they are looking to move up. Instead of building wealth and becoming an investor, they look into selling their home and getting the down payment from the proceeds. Another option is pulling the down payment as a second loan from your primary residence. Anytime you purchase a primary residence, you only need 5-20% down, depending on whether you want to pay PMI or not. PMI is based on your credit score and the loan-to-value ratio, and this could be relatively low, so many times I advise people to not put the full 20% down.

If you took advantage of the low-interest rates, this definitely could mean positive cash flow for you on your new rental, which will help make up the difference in your higher payment on your new property. Now, this may not be for everyone, but it is definitely an option. If this sounds like something you would be interested in now or in the next year or two, Book a consultation with me so we can come up with a plan for you.


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About Me

About Me

Hi I'm Monica! I'm a Real Estate professional in love with houses, especially vintage houses. I even have my Historic Homes Specialist designation. I enjoy decorating and rehabbing and helping my clients create their dream home with inexpensive updates. I also love helping sellers get top dollar for their property by taking the dated out of their home and staging in a modern simplistic way. I'm also obsessed with Mid Century furniture, so if it doesn't fit in my house, you'll find it in my Etsy Shop. I enjoy coffee and thrift store shopping to look for items to repurpose and use in house. And of course anything vintage, I’m a bit of a June Cleaver. I’m a wife and a mom of teenage twins that I homeschool. I am currently a Realtor in San Antonio, TX, and a lender in both Texas & California. But if you are from Southern California don't worry I have connections, I also help educate all over the country about the home buying process and have a team of people that i work with to help you reach your goals. We moved to SATX from SOCAL in 2018 to simplify our life. I love it here and have helped several people relocate. Read More


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