Comments on: I want to rent out my small house and rent something bigger, not sure how to go about it? need finance advice? http://financestate.info/i-want-to-rent-out-my-small-house-and-rent-something-bigger-not-sure-how-to-go-about-it-need-finance-advice/10/ The state of finance... In today's times. Thu, 08 Apr 2010 17:42:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: glenn http://financestate.info/i-want-to-rent-out-my-small-house-and-rent-something-bigger-not-sure-how-to-go-about-it-need-finance-advice/10/comment-page-1/#comment-8 glenn Sat, 21 Jun 2008 11:10:48 +0000 http://financestate.info/i-want-to-rent-out-my-small-house-and-rent-something-bigger-not-sure-how-to-go-about-it-need-finance-advice/10/#comment-8 If you sell your home and it has been your homestead for several years---you don't have to pay income tax on the profit! If you have made $100,000 in profit then you turn around and rent that house for several years and then sell it, you will have to pay tax on the entire amount...including the $100,000 in profit you made while you lived there. I wouldn't rent my homestead out and walk away from tax free profit! Talk you your tax guy before you do this. If you sell your home and it has been your homestead for several years—you don’t have to pay income tax on the profit!

If you have made $100,000 in profit then you turn around and rent that house for several years and then sell it, you will have to pay tax on the entire amount…including the $100,000 in profit you made while you lived there.

I wouldn’t rent my homestead out and walk away from tax free profit! Talk you your tax guy before you do this.

]]> By: rick http://financestate.info/i-want-to-rent-out-my-small-house-and-rent-something-bigger-not-sure-how-to-go-about-it-need-finance-advice/10/comment-page-1/#comment-7 rick Thu, 19 Jun 2008 11:38:22 +0000 http://financestate.info/i-want-to-rent-out-my-small-house-and-rent-something-bigger-not-sure-how-to-go-about-it-need-finance-advice/10/#comment-7 I'm going to assume you are in the U.S. - The first thing you must do is secure a lease from a prospective tenant on your existing little house. Meanwhile keep your eyes open for homes that are being offered for rent so that once you have your own tenant you can then make the move. Depending on where you are though you may be able to qualify for purchasing a house as mortgage lenders usually look at a signed lease as that particular debt being relieved from you so it opens up some possibilities for you possibly to buy. Try to get 20% more than your current mortgage payment if possible. In other words if your monthly mortgage payment is $1,000 per month, then try to get $1200. Talk with a lender in your area about these possibilities. If you are in PA let me know and I can steer you toward some people! You can check out my website at if you need to get in touch. I’m going to assume you are in the U.S. – The first thing you must do is secure a lease from a prospective tenant on your existing little house. Meanwhile keep your eyes open for homes that are being offered for rent so that once you have your own tenant you can then make the move. Depending on where you are though you may be able to qualify for purchasing a house as mortgage lenders usually look at a signed lease as that particular debt being relieved from you so it opens up some possibilities for you possibly to buy. Try to get 20% more than your current mortgage payment if possible. In other words if your monthly mortgage payment is $1,000 per month, then try to get $1200. Talk with a lender in your area about these possibilities. If you are in PA let me know and I can steer you toward some people! You can check out my website at if you need to get in touch.

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