Search Keyword & Location:

    Got a question for the community?

Real-Estate Articles

Loading...

E-mail Alerts

I'm looking to purchase a second home & rent out my current home. The rental amount would still leave me paying the taxes. Is this a wise decission?

rated by 0 users
Not Answered This post has 0 verified answers | 1 Reply | 2 Followers

Top 150 Contributor
2 Posts
aeckton posted on 3 Sep 2011 12:52 PM

I'm looking to purchase a second home & rent out my current home. The rental amount would still leave me paying the taxes on my first property.  We live in MD where there will be alot of relocations from the military. Is this a wise decission?

All Replies

Top 500 Contributor
1 Posts

Rental cashflow should always be positive as a rule. The old rule stated that negitive cashflow was ok ,the market will appreciate and you will recover loses on home appreciation. Not the rule anymore.

 

The monthly cash flow is a calculation of the net operating income (NOI) (Gross Rental Income minus expenses including taxes) minus the debt service, or mortgage. Once the monthly cash flow is determined, multiplying by 12 will yield the yearly cash flow. This should be a positive number.

Page 1 of 1 (2 items) | RSS
The information in this Community is for informational purposes only and should not be construed as expert or professional advice or substitute for professional, financial or other such counsel. RealtyTrac and its affiliates assume no liability for any inaccurate information, or for any actions taken in reliance thereon. The content submitted by each user has been supplied by such individual or firm without verification by RealtyTrac, and is considered public property since it will be published publically to the online world. Any content submitted by a user is strictly the opinion of that user; RealtyTrac assumes no responsibility or liability for any content published in the Community. Submitting content to the Community does not initiate or constitute a business relationship with RealtyTrac or any user.