How to buy a second home and rent the first, according to experts - Business Insider

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.and rent out your first home, there are a few things to know before making the purchase.

Renting out a home on a full-time or part-time basis can be an excellent way to make some extra cash. But it's also likely to bring its own set of expenses. When renting out a home, most people are able to deduct expenses in addition to mortgage interest and property taxes up to $10,000 per year, tax expert and CPA. Your second home's bills, maintenance costs, and even improvement costs can become deductible expenses. However, you'll have to pay income tax on the money your second home brings in.

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