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Question

Real Estate Attorney

R
Rootfifth · · 4 replies

Hi everyone! Hope everyone is doing well!!

After much thought and discussion I have decided to rent out my house!

For context, my house is in Central California (Los Banos), I purchased it for $452k and currently owe about $396k.

Mortgage is $2700 with 3.25% interest.

Rent estimators have all been around $2100 to $3000 (the $3k includes the fact that it is newer construction, has solar panels, 3 car garage and a tankless water heater).

A local property management company has estimated I’d get around $2500 a month.

I feel as though prices will increase in the future and am ok with not having positive cash flow in the short term.

I would be changing my primary residence address so as not to have my mail delivered 100 miles away.

I want to be sure that there are no clauses that prohibit me from renting out my primary residence without having to refinance.

My question for you all is: does anyone have recommendations for real estate attorneys or resources where I can look for one

Thank you!!

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Replies (4)

lesliemacdonald

lesliemacdonald

5 months ago

Check out the nearest Real Estate Investor group (link below). The phone # is listed for the local group’s point of contact. That person can steer you to an attorney knowledgeable about the rules related to renting a primary residence. In particular, before renting your place out, inquire about the consequence of converting to a rental on your future ability to use the preferential home owner tax treatment of the longterm gain exclusion when you sell the house. Property insurance will need to be re-written as a renal agreement and may be cheaper because you would not be insuring furnishings and such. Tenant screening and management is critical to ensuring your home is not subjected to costly damage - professional property management should be considered to manage this very real risk.

Good luck!

National REIA | Find a REIA - National REIA

Rootfifth

Rootfifth

6 months ago

So quick edit- I currently owe $390k.

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