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[quote=Anonymous][quote=Anonymous]Married 1999. Bought first home in DC 2004. $605k. We put down 20% of our own $ (no help, inheritance, etc).

Moved out of first home 3 years later to rent in new area/test it out. Renovated first property and rented it out.

Bought 2nd home or 1.06k in 2009. Put down 20% of our own savings again.

No outside help, no prior home sale.

We rent out first home which more than covers that mortgage.

We could have sold first and gotten a slightly bigger second home- but first home is such a great investment property we decided we will hang onto it forever.[/quote]

when you rent out a home you origianlly bought to live in, do you need to tell the bank?  I would think if you told them, they would recalculate so that you are paying 1% more (investor rate) interst on your remaining balance, plus maybe they would require you to kick in extra money since investors typically need to put 25% down rather than 20% down.  I'm thinking of buying a new house and thinking of renting out our current house, but I'd like to carry two mortgages to do it rather than pay off my original with mutual funds as I have a feeling the mutual funds are undervalued right now.[/quote]

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