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Old 10-05-2018, 11:35 AM
 
Location: Minnesota
2,609 posts, read 2,190,478 times
Reputation: 5026

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If you have a mortgage there may be some issues with the mortgage company if you rent, call them to find out and ask them to reply in writing. Also homeowners insurance, coverage will be different for a rental home, call your insurance agent, your homeowners insurance may be void under policy if you are renting home. Require renters to carry renters insurance. I've even seen it paid by homeowners and just charge renters for the extra amount so you can be sure there is renters insurance.
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Old 10-05-2018, 12:52 PM
 
106,673 posts, read 108,833,673 times
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Yes ,your mortgage can be called as it is for owner occupied .also landlord insurance is very important as regular homeowners is for owner occupied. It makes your tenants a household member and an insured like you . If they vandalize it ,arson ,or steal you will not have coverage since that is an insurance job
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Old 10-05-2018, 01:14 PM
 
Location: Minnesota
2,609 posts, read 2,190,478 times
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Also, if your friend plans on renting the two units out separately, are they legal separate units? Is there a CO for both units?
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Old 10-07-2018, 07:15 AM
 
128 posts, read 149,265 times
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Renting your home can be a headache. It is time consuming and dealing with tenants can
be difficult. I own a rental that is now paid off and the extra income is great but it wasn't
easy along the way.
There are also tax implications of selling the home after it was a rental.
If it's not your principal place of residence you have to pay capital gains taxes so that
$40k you're hoping for will be much less.
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