Renting my current home and building a new home?
We are planning to rent our town home (would take a large loss if sold) so we can build on land that we owe free and clear (no debt on 80 acres). We plan to use a property management company to manage the rental. The question is will it be hard to qualify for a construction loan/mortgage? Or will the bank take into consideration the townhouse is being rented out and include some of that income when doing the debt to income ratio? Also will having a property management company run the rental increase are chances of getting a loan. Both my husband and i have credit scores over 700. Thanks for any advice.
Our current mortgage is the only debt we have, we have no consumer debt.
In response to taking a loss over an extended period: we wouldn’t take a loss because the rental income would cover the mortgage. Repairs would be minimum and in ten years if we wanted to sell “who knows the market might be recovered”.