Mortgages used to restrict people's ability to convert their current home into a rental property and invest in buying a new home, but things no longer seem that way if you properly assess the underlying risk factors.
When a person has a mortgage on their home and wishes to purchase a second property that is also mortgaged, there is always risk in this future investment. Two mortgages mean more expenses such as covering the monthly loan payment, property taxes, utility bills and insurance.
To this list should be added the cost of regular repairs, maintenance and renovation of both dwellings. For these, it's a good idea to have a contingency fund on hand for when your monthly income is less than the cost of pressing repairs.
One of the key factors that can tell you that it's already time to take the step towards buying a second home is when the rents in the residential area where your home is located significantly start to exceed the amount of your monthly housing payment. This is a clear sign that you may choose a new home in another part of town and rent out your current residence.
Many people try to sell their current home in order to buy a new home, but often have to sign additional contract clauses and make arrangements in case they are unable to sell the home they live in first. This will naturally not be necessary if you rent out your current home and sign a tenant agreement. In case you undertake this strategy, you have a great chance of being approved by banks for bigger loans with good repayment rates, which is another advantage and a prerequisite for a good future investment.  

Investing in real estate has been a way for many people to increase their income for years. If you own a home whose rent can exceed the cost of monthly loan payments to buy a new one, this is an ideal chance to increase your wealth.

If you have decided to rent out your current home, we at Bolarski Estates Veliko Tarnovo we are ready to find the right tenant for it. Contact us.