Are you a St. Louis homeowner feeling stuck between wanting a new home and the high costs of buying in today’s market? You’re not alone! Many St. Louisans are in the same situation, locked in with low mortgage rates but yearning for more space, amenities, or a different location.

Here’s a strategy gaining traction: renting out your current home and renting a new one instead of selling or buying. It might be a good fit for you if:

• You have a low, fixed-rate mortgage: This keeps your current housing costs low, creating financial flexibility.
• You’re not ready to commit to buying: Renting a new place allows you to test the waters without a long-term financial commitment.
• You want to keep your existing home as an investment: Renting it out can generate income and potential long-term appreciation.

Here’s how it works:

1. Rent out your current home: Find responsible tenants to cover your mortgage and potentially generate additional income.
2. Find a new place to rent: Search for a home that meets your current needs and desires, whether it’s more space, a pool, or a different neighborhood.

Benefits:

• Lower monthly costs: Renting the new home might be cheaper than buying, especially with today’s high mortgage rates.
• No large down payment: Avoid the financial burden of a down payment on a new home.
• Maintain ownership: Keep your existing home as an investment and benefit from future appreciation.
• Flexibility: You can move back to your old home later or explore buying when the market changes.

Things to consider:

• Landlord responsibilities: Renting out your property requires finding tenants, managing repairs, and facing potential vacancies.
• Limited control: As a renter in the new place, you might have limitations on modifications and may face potential rent increases.
• Market fluctuations: Both rental markets can fluctuate, impacting your income and expenses.

Is it right for you?

Consulting a St. Louis mortgage broker like Carlson Mortgage can help you assess your financial situation, weigh the pros and cons, and explore all your options. We can help you understand the current St. Louis rental market and navigate the complexities of being a landlord.

Remember, this strategy isn’t a one-size-fits-all solution. Talking to a professional can help you determine if renting out and renting is the right move for your St. Louis housing journey.

Written by: Carlson Mortgage – a top-rated St. Louis mortgage broker providing home loans in the state of Missouri. We are routinely ranked as a #1 mortgage broker in Missouri on Yelp, Google and Zillow. We can be reached at (314) 329-7314 seven days a week.

Our loan application can be found here or you can call us at 314-329-7314 to speak with one of our mortgage loan officers. Also, here is our pre-approval page, if you are looking to buy a home or need a referral to a top real estate agent.

Let us be your source for some of the lowest mortgage interest rates in St. Louis on first-time home buyer, conventional, FHA, Veterans (VA), Jumbo and condominium (condo/town home) financing. Since 2004, our loan officers have been providing home loans and mortgage services in St. Louis that are tailored individually to your unique needs and to your financial situation.  Call us today to inquire about home loan interest rates, to get pre-approved for a purchase or a refinance mortgage, or if you have any general mortgage lending questions.