Your Current Home as an Investment in a Local Move

The homeowner who is relocating in the same area could have the ideal rental real estate investment right under their nose. Rather than selling their current home and searching for an investment property, why not keep the home and convert it to a rental? Think of the advantages in this situation:

• There is no need to search for a good buy.
• There is excellent knowledge of the property and its condition.
• There are no transaction costs to acquire a property.

A study of the rental market, location of a tenant, and financial equity analysis could result in the ability to withdraw some equity from the home. If you can do this while maintaining a good return on investment, the leverage can work for you in other investments.