OK, so this might be a little out of the ordinary for a non-Officer or Military but I was talking with a NG Officer I used to work with recently and he kept his old home after moving to a new one. He rents out or leases his old home now via a private real estate management firm. They manage everything and charge him a fee as well as for repairs. So in his case it is kind of a hands off operation.
A while back I knew a lady I worked with a while back in California and her and her husband had done that over their lifetimes and had approx 5-6 rental properties the last time I talked. What she said is it was a mixed bag and her and her husband found you really needed 2-3 rental homes to keep out of trouble financially when one has major repair issues.
Just wondering how prevalent this practice is and if it pays off via appreciation or if it is more of a hassle then it's worth?
So I guess the question is two fold:
1. Does it pay to keep your old home and have it managed by a rental company?
2. Can this be turned into a rental business by keeping your old home each time you move?
1. Depends. Household income, budget restraints, and rented amount vs. mortgage payment are the primary factors in determining if it is profitable or feasible. If so then definitely go for it. Real Estate does go up and while now is a down time, it's not down that bad in the grand scheme of things.
2. Yes. I've talked to a bunch of people who have done exactly that.
OK, thanks for the feedback. Thought I'd get a second opinion because the person telling me now that it might be worth checking into is a realtor thats trying to diversify.
