Turning Primary Residence Into Rental
I've purchased a new house and am going to turn the one I'm moving out of into a rental. Since it wasn't originally purchased as a rental property, is there anything I need to do?
I've purchased a new house and am going to turn the one I'm moving out of into a rental. Since it wasn't originally purchased as a rental property, is there anything I need to do?
make sure that the underlying loan is not an FHA. There is, I believe, a prohibition on renting the property if it is covered by an FHA loans (someone please confirm this for me). FHA loans are for owner occupants.
Also remember the tax implications of this move. I forgot all about it with one of my properties and now I have made a mess of my taxes vis-a-vis depreciation. Talk to your tax advisor.
Russell