Correct. It’s a real problem with the ones going the conventional route. In MD/PA there are some smaller builders doing these construction to perm loans. You close up front, builder pulls money from the construction loan but your paying interest. I forget the exact details but I think the interest is only on money that was withdrawn. At least you lock in the rate but your carrying the interest payment and either rent or another mortgage which means you were flush with cash in the first place.

Just hire a property manager and call it a day. They will take care of everything. I’m sure you could do it but if it’s your first time, a property manager is the way to go. Not only do they have contacts with plumbers/electricians, they can be the “bad guys” so you don’t have to. Rent is late 3 days? Send a notice to “pay or vacate”. Then if you ever need the property back. You can move in easily since it’s a single family home.

You 100% want to keep your house and rent it out. I could have rented my first house when I bought my current house. Or I could have sold and had a larger down payment. Decided to rent. Refinanced my original mortgage, cash flow $2,000/mo. And someone else is buying my old house for me, and paying $2k toward my new house. And equity has fine up$300k since I purchased second house. Would really be kicking myself had I sold. This makes sense to keep ESPECIALLY because you recognize you could not afford to buy your house later. You’re in. Don’t lose that. Build upon it.

Rate Lock it is called. No, I will not sell my house for a bigger one if it means giving up this mortgage rate. I also am not interested in 1031 exchanging any rentals since investor rates are really going to suck. New construction has already slowed dramatically so that means even less inventory coming online. This is why higher interest rates historically lead to higher rent rates.

If you're in a hot market your rent will cover the mortgage and build your roof/AC/new tenant fund. It's free equity building. PLUS the tax write-off on the mortgage.

Just rent your home, and rent in the area you want to live. You will still be building equity, and have an escape plan if you need to hunker down.

My hedge is renting, fucking AVB with my rent control. $3k a month for 1000 SQ FT 2br in LA, mortgage on an equivalent space is $5-6k + HOA fees....

There is a difference between real value and market value. When land was plentiful back in the 1700s and people could ride west and take as much and as good land for themselves as anyone else, there was no market value for land. But the land still had real value since it facilitated the deployment of labor and capital to produce wealth. This is relevant because land is now scarce, which drives up the market price. However, this market price is below the real value of the land, due to EBCOR (excess burden comes out of rent) and ATCOR (all taxes come out of rent). If we insituted a full land value tax, the market price for private ownership of land would go to zero, but the true value if land to society would skyrocket and provide an adequate basis to fund all public spending and a UBI, without using any other taxes. This is the single tax: just tax land lol /r/georgism

Rent is always higher than a mortgage…

Yes you could win the lottery or get a 3x higher paying job in another location. They are saying they are stuck as they have found themselves in a very fortunate financial opportunity and a decision on risk. Most people have a low risk appetite and would do what you recommend. Sell your current house and buy another. If it was an apples to apples on interest rates, I'd probably agree. However, interest rates were at 2-3% and houses going up 10-30% in value a year....yeah I'd rent it out and put whatever I can down on a new house.