How To Turn Your Primary Home Into A Rental Property

Рет қаралды 32,140

11 ай бұрын

Are you considering turning your home into a rental property?
In this video, I’m going to share all of my tips and lessons learned about turning your primary home into a rental property so that you can have the smoothest transition while maximizing your profits.
If you’re thinking of turning your home into a rental property, then download my FREE primary rental checklist. 🔗 goodsweethomes.ck.page/rental...
It’s completely free and it’ll help you navigate the process of turning your home into a rental!
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✅ ✅ Attend our FREE "How to buy your first rental property masterclass" here: www.goodsweethomes.com/how-to...
► If you want to learn how to start investing to eventually purchase your own property, then check out our latest course, Rental Ready Finances, where we help you fix your money so that you can be a real estate investor in the near future!
Link: sharonsean.teachable.com/p/re...
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Visit our Website! ► www.goodsweethomes.com/
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*Please note that the information in this video is for educational and entertainment purposes only and should not be taken as financial or investment advice. Any investments or financial decisions you make based on the information in this video are at your own risk. The links in the description above may include affiliate commissions or referrals, and I may receive compensation from partner websites. The information in this video is accurate as of the posting date but may not be accurate in the future.

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@seanlovesrealestate 11 ай бұрын

What are your biggest challenges when it comes to turning your home into a rental?

@themariomaster5207 11 ай бұрын

Buying the home

@arpansujatha6556 11 ай бұрын

Thank you for the informative video. I followed similar advice from others in the past and converted my primary into rental when I moved. Can we transfer the house onto a LLC to limit our liability when we convert into a rental? Will there be any issues with the existing mortgage company? Thanks for considering this question.

@heesungyoo4626 11 ай бұрын

We are also planning to keep the current home as a rental property. This current home can split up 2 units since the basement is legal suite with a separate entrance. Now, i feel like falling in a dilemma when it comes to buying a second home where we move to because I am not sure which is better between buying an old house with a separate entrance that needs to be fully renovated and buying a new home with a separate entrance. The other challenge is that we can't put 20% down to purchase a second home due to lack of cash, but 5% is okay. Good thing is we have a heloc account with 175k in it. Whats your thought on this? Our long term plan is to keep purchasing more home for investment just like you do.

@themariomaster5207 11 ай бұрын

@Flametamer777 yeah

@UncleUncle-wo6mo 10 ай бұрын

💡 Elevate your financial game with real estate investment wisdom. Uncover success in every deal. 💼🔑

@billbonu1639 5 ай бұрын

If you're in LA area you can rent out your walk in closets for 2000 a month and your broom closet for 800.

@nothinggood000 4 ай бұрын

Lies, I can’t find a broom closet for anything less than $950

@seanlovesrealestate 22 күн бұрын

lol

@jimross2101 6 ай бұрын

You left out some important steps, like if your mortgage company is ok with you moving out and changing it to rental use, and whether local and zoning laws allow for you to change it's classification and what paperwork and fees may be required, and depreciation, property taxes, recapture tax and on and on...

@seanlovesrealestate 22 күн бұрын

True, but most mortgages only require you to live in the property as your primary residence for 1 year. You can do whatever you want after that. If you own a single family home, you can usually do whatever you want, but if you own a condo in a strict HOA, they may limit the total amount of rented properties in the HOA, so you might need to wait until you can rent your unit out (which is one reason why I hate condos).

@Mavis-Jason 6 ай бұрын

*Amazing content. You are still the best! It's been a year since I found ways to improve my finances and by working with a recognized professional, I was able to achieve financial independence. I have to say this; “As long as you have determination and work hard, you can achieve anything you set your mind to.”*

@user-so1gb8uj9v 6 ай бұрын

I appreciate your videos man! Thanks a ton.

@seanlovesrealestate 6 ай бұрын

Thank you for watching! ☺️

@mayyang8350 4 ай бұрын

So happy to come across your channel. Your content is so helpful.

@seanlovesrealestate 22 күн бұрын

Welcome to the channel! :)

@treonnarogers8669 5 ай бұрын

Thank you for the knowledge !

@seanlovesrealestate 5 ай бұрын

My pleasure!

@SpodySpazable 3 ай бұрын

This actually helped answer a lot of questions I came looking for - so thank you. Also - My wife and I moved from the Bay Area to Texas as well! Hope you are enjoying it as much as we are. One thing I didn't see covered, and may be in another video, would be how much to expect to charge in Rent? Is that something that a property manager would decide? Do you just go based on Market average? I feel like our home would price better since we have installed a hot tub and an outdoor kitchen, but at the same time I don't want to sky-rocket the price and scare away tenants. All the same - I have to turn a profit. How does one go about finding that price that's just right?

@seanlovesrealestate 22 күн бұрын

Great question! We typically use property managers to give us guidance on what a property should be rented for. If you have really nice amenities in the home, you could try to make your home a mid-term rental (30 day+ stays). It makes more money but you do have to deal with different personalities with every turn and sometimes the home can sit vacant for a few weeks (we're doing this with our Bay Area home). Best of luck!

@yellowberrypie 5 ай бұрын

Great call on changing insurance, thank you

@seanlovesrealestate 5 ай бұрын

My pleasure!

@riveratech1 4 күн бұрын

I would like for you to do a video on the stepping stone method of obtaining properties. Purchase your primary home, live in it for over a year, find new home, turn old home into investment property and so on. We are already planning to move to Tampa and was approved for our HELOC for the next purchase. What would you recommend we do and in which order? We already know we want to move to the Wesley Chapel area but what is next? do we need to live in Tampa before moving there? do we need to find jobs before applying for a mortgage in a different state? how do we proceed?

@noelmilleryoga5993 Ай бұрын

This is very helpful. I own my townhome free and clear and I may need to relocate temporarily to finish my masters degree. My home is smack dab in the middle of Midtown Atlanta and it's very valuable. I've never rented anything out before so this is a brand new experience to me. Thank you so much for this information.

@seanlovesrealestate Ай бұрын

That’s what we did! Thank you for watching. ☺️

@soexceptionalmsamilya 3 ай бұрын

This was helpful. Thanks

@seanlovesrealestate 2 ай бұрын

You're welcome!

@ottertubetv9356 6 ай бұрын

Glad I found you, subbed

@seanlovesrealestate 6 ай бұрын

Welcome to the channel! ☺️

@copierofvideos2 7 ай бұрын

Hey Sean love all your tips! I'm planning to move from CO to TX

@seanlovesrealestate 7 ай бұрын

Hey! Thanks! We are actually going to travel for a year and rented out our TX home. ☺️

@thefilmers705 10 ай бұрын

Perfect timing for this video to come out! My family is about to start renting our house so we can move out of state while keeping our family lake home. But instead of long-term renting we'd do weeklong renting on Vrbo to maximize profits.

@seanlovesrealestate 10 ай бұрын

Appreciate you watching! Best of luck. ☺️

@grodz9653 7 ай бұрын

Do you recommend a good CPA? I live in San Antonio tx. If you can help me i would appreciate it

@user-vx4cw5ox7s 11 ай бұрын

These vids are so informative. Absolutely love ur content.

@seanlovesrealestate 11 ай бұрын

Thanks!

@TMPproductions693 7 ай бұрын

Hey Sean, I'm just starting in real estate and just got a great loan from some family I was wondering if there is a possibility of talking one on one about ways to start, setting up a business, and tax deductions I've watches most of your videos and they are very informative thank you so much

@seanlovesrealestate 7 ай бұрын

Hey! I have a coaching session. You may check the link on my bio. Thanks!

@gurumonkey 22 күн бұрын

Are there any problems with turning my primary into a rental and then renting an apartment myself? Does it matter that I would own the rental property but not my primary residence?

@seanlovesrealestate 22 күн бұрын

There's no problem as long as you lived in your primary for at least 1 year. We actually do this when we move to a new place. This lets us keep our low interest rates on our properties!

@mayyang8350 4 ай бұрын

Since my home is homestead. Should I notify my local county to change the homestead exemption when I rent out my home? I am thinking of doing a midterm rental through Furnished Finders.

@seanlovesrealestate 22 күн бұрын

Yes, you should change that because you're not living there anymore. TBH I've been renting my old home in the Bay Area for 3 years now and have gotten 70% of my guests from Airbnb, 30% from VRBO and 0 from furnished finders. I think furnished finders is best for smaller places (like ADUs) than full houses, but that's just been my experience.

@fireballman31 10 ай бұрын

Loved the effort and thoroughness of this video including all the personal examples given the time format. Your a great example of spreading mindfulness about your finances and looking out for calculated investments. Just letting you know it’s appreciated

@seanlovesrealestate 10 ай бұрын

Thank you so much for appreciating. Means a lot! ☺️

@Iloveslipknot648 11 ай бұрын

I love ur videos ur so smart and you’ve taught me a lot a things

@seanlovesrealestate 11 ай бұрын

glad it's been helpful!

@Deded12 11 ай бұрын

I love your vids thanks for teaching me how to realistate

@seanlovesrealestate 11 ай бұрын

Thanks for watching!

@silverstone4261 11 ай бұрын

Hey Sean! I found your videos on yt shorts and it roped me in to the idea of real estate, and passive income, im curious which you think is better to start with, a single property or something like a duplex or quadplex

@seanlovesrealestate 11 ай бұрын

Thanks for watching the videos! It really depends on what you prefer. Ideally, a multifamily property would be the best for cashflow purposes, but most people would prefer to buy a single family home for their own comfort. The best thing about personal finance is that it's personal!

@jordanhayes1748 11 ай бұрын

Good stuff, thank you!

@seanlovesrealestate 11 ай бұрын

Thanks for watching, Jordan!

@anua2247 11 ай бұрын

Hello Shan, can we have two houses as primary residence on single person? and submit form to city stating the house as rental for city tax purpose and second as primary ? Is this possible?

@seanlovesrealestate 11 ай бұрын

You can only have one "primary" home at a time for homestead tax purposes. But you can get a "primary" home loan once a year with a bank to get those low interest rates.

@cattleya05red49 11 ай бұрын

Hi Sean, this what a very helpful video. I found the asset protection piece interesting. Do you have any plans to make a video on asset protection, LLCs and if there is ever a right time to keep properties under your personal name?

@seanlovesrealestate 11 ай бұрын

Thanks for watching! This video might be of help. kzfaq.info/get/bejne/jpqHgJBlnr3DmYU.html

@660woodworkingandreno8 4 ай бұрын

How do you roll your home into an LLC ?

@seanlovesrealestate 22 күн бұрын

Reach out to a local title company or real estate attorney and they can do it for you for about $150 per property.

@wlac101 9 ай бұрын

Thank u! Can we rent our home out to a long term year long lease or more but leave it minimally furnished? Dining table, 2 beds, sofas? All furniture is less than 2 years old. We don't want to throw out our furniture or take it to our new apartment in New england

@seanlovesrealestate 22 күн бұрын

Yes, it's possible, but the new tenants might want to refurnish it. In that case, you might need to hire movers to store it in a storage facility.

@emilyhood9335 11 ай бұрын

Thanks for the tips!

@seanlovesrealestate 11 ай бұрын

Happy to help!

@spicyduck3710 10 ай бұрын

Sean u rock!!! I want to do this! How do I rent this out BUT still buy a duplex? HELOC, I have equity on my house. Please 🙏 help!!

@seanlovesrealestate 9 ай бұрын

Thanks for watching! Speak with your lender to see what you can and can't do with your HELOC and if you qualify to purchase another duplex. Good luck!

@bradlandau9049 10 ай бұрын

Do you have a video or tips how to vet tenants properly?

@seanlovesrealestate 10 ай бұрын

Hey! I don’t but I’m planning to do one in the future. ☺️

@user-sy2dj9nv4e 2 ай бұрын

❤

@Weekinthelife15 11 ай бұрын

How is tax season for you in regards to owning homes in 2 different states? Do you have to pay the other state’s taxes on top of your current one’s for both houses?

@seanlovesrealestate 11 ай бұрын

Great question! You have to pay nonresident state income tax for the state in which your property resides. You include this income on your resident state income tax return but get a tax credit in your homestate so you don't pay twice on the taxes. I highly recommend working with a CPA once you have more rental properties. Hope this helps!

@TMTTucker 11 ай бұрын

What about professional tenants and California being a tenant-friendly state?

@seanlovesrealestate 11 ай бұрын

That's a great point! Professional tenants are really annoying and they can be a challenge to deal with especially in tenant-friendly states. Tbh, there's not much you can do once they're inside your property, so the best thing that you can do is to vet each tenant carefully before you allow them to stay in your home.

@madox-936 10 ай бұрын

I’m only 13 so I can’t do anything like this yet but what do you recommend me ???

@seanlovesrealestate 10 ай бұрын

That’s alright. Just keep on learning while you’re young.

@madox-936 10 ай бұрын

@@seanlovesrealestate ok thanks

@Kingman-13 10 ай бұрын

Same, I’m just planning ahead! 😂

@Parascuba 10 ай бұрын

Congrats you just won a subscribe/follower :p I talk with friend numbers of years ago about mess ideas of rent house. Friend suggest if house is 1,000 sq ft then rent house for $1,000 a month. If house is 400 sq ft then rent house for $400 a month. Is it good idea? or worst idea?

@seanlovesrealestate 10 ай бұрын

Thanks for subscribing to the channel! We don't price our homes exactly based on the square footage, but naturally, the large the house, the more we charge for rent.

@themariomaster5207 11 ай бұрын

@seanlovesrealestate 11 ай бұрын

hi!

@themariomaster5207 11 ай бұрын

@@seanlovesrealestate hello

@kenji424 11 ай бұрын

Sean, how often can you use Section 121 exclusion in your lifetime? Can you use it as many properties as you can as long as you live there more than 2 years ?

@seanlovesrealestate 11 ай бұрын

As far as I know, there is no limit to the amount of times that you can use the Section 121 exclusion. But if you do it more than once a year you'll probably raise some red flags.

@kenji424 11 ай бұрын

@@seanlovesrealestate thank you.

@seanlovesrealestate 11 ай бұрын

No problem!

@brilliant010203 11 ай бұрын

@@seanlovesrealestate Does this Section 121 exclusion rule apply even if you lived in home for more than 10 years continuosly?

@ZayAccount1234 11 ай бұрын

How can I invest as a 11 year old?

@seanlovesrealestate 11 ай бұрын

Have your parents open a custodial account for you!

@ZayAccount1234 11 ай бұрын

@@seanlovesrealestate ok I’ll ask them to do that I’ve learned about that in your videos

@nathanielshaneclarke7174 9 ай бұрын

What do you commend? Self managing or asking a property manager?

@seanlovesrealestate 22 күн бұрын

Out of my whole portfolio, I only self-manage one of them. It takes away a huge burden and allows me to be more free!

@larsejgaardbissenbackerjrg6575 11 ай бұрын

I live in Denmark, here you have the biggest chance, if it's not furnished, Because people here want too decorate there own place, an not live In another's crapy furniture. You pay pr month. And can move when you want, the down payment is 3 times rental, plus first pay, after they move out they have to pay for 3 month, or until another person moves in

@seanlovesrealestate 11 ай бұрын

That's good to know! But I know that there's many people who enjoy being able to travel to another place for a few months and not have to worry about buying new furniture. On top of that, it's much more comfortable than staying in a small hotel.

@raiya.fransan1546 8 ай бұрын

What about if you don’t move out of your property and live with roommates?

@seanlovesrealestate 8 ай бұрын

That’s househacking then! I did that before.

@srqcrna 3 ай бұрын

Lol

@niloy646 11 ай бұрын

Sir, i am a student. I am from Bangladesh. I have 50000taka or 500 bollar. I want to invest. Can you plz help me plz plz plz plz plz..... I want to invest for my haiyer study’s... Love yor video 🖤🖤🖤🖤

@seanlovesrealestate 11 ай бұрын

Thanks for asking, but I only put my money in things and people that I know. Best of luck!