Many times, the rent in your area may not be high enough to cover your mortgage payment so this will incur a monthly negative cash flow. For instance, if your monthly mortgage (PITI) is $1500 and the maximum rent you can charge is $1200, then you’ll have to pitch in $300 a month to keep your mortgage current.
If you have equity in your home, you may be able to cover the mortgage and all these costs. However, if you have little to no equity, you need to evaluate your budget and determine if you can cover these costs. Most homeowners don’t like the cost or hassle of becoming a landlord.
Leasing is another option, especially if you want to hold the property long term and can afford any negative cash flow.
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