Hi Jessie,

Owning a rental home can be both a lucrative and a risky investment. Even if you have a lease agreement, your tenant may not pay rent, damage your house, or cost you money in many different ways. Before taking on the risk of owning an investment property, I think it would be wise to consult with a financial planner and a property management company. Both could provide sage advice about the up sides and down sides of owning an investment property.

My personal opinion is to get your finances in order before you purchase and move to a new home. That may means waiting to buy a home until your current property sells. (Even if you need to forfeit your earnest money on the new purchase). With the housing and financial markets currently in duress, I believe prudence may be the best course of action.

Ben Edgson
Mortgage Banker
By the Brooke Mortgage