By Kendal Keyes

From Starter Home to Forever Home: How to Move from One Home to the Next

Thinking about moving to a new home but feeling overwhelmed by the process? You're not alone! One of the biggest concerns people have when upgrading their home is figuring out how to transition smoothly from one place to the next. Do you need to sell your current home first? How do you afford a down payment on your next home if your money is tied up in your current one? Can you buy before selling, or maybe even keep your current home as a rental?

There’s no one-size-fits-all answer, but the good news is that there are multiple ways to make your move work—whether you want to keep it simple or get creative with financing options. In this guide, we’ll break down the three main routes you may choose when buying your next home.

1. Selling Your Current Home Before Buying

This is the most straightforward option, and it's what we did when we moved from our first house to our current home. You sell your house, move into a temporary rental (like an Airbnb), and then buy your next home.

Pros:

✅ Financially simple: You don’t have to juggle two mortgages or come up with a creative way to fund your down payment.
✅ Less risk: You’re not financially committed to two properties at once.
✅ More purchasing power: Since you’ll have the full proceeds from your sale available, you can make a strong offer on your next home, possibly even with cash.
✅ No pressure to rush the sale: You don’t have to worry about carrying two mortgages or selling quickly at a lower price just to move forward.

Cons:

❌ Temporary housing hassle: You’ll need to move twice—once into a rental or Airbnb, and then again into your new home.
❌ Storage logistics: Your belongings may need to go into storage, adding an extra layer of expense and coordination.
❌ Market timing challenges: If home prices or interest rates rise while you’re between homes, you could end up paying more for your next house.

Who is this best for?
This strategy is ideal for people who prioritize financial simplicity and don’t mind an extra move in exchange for a smoother buying experience. It’s also a great option if you’re selling in a competitive market and want to maximize your home’s value before purchasing.

On a personal note, this is the path we took when purchasing our current home. At the time, our top priority was stability and financial security—we wanted a place where we could settle in for the long haul. Do we regret the decision? Well… yes and no. We achieved the security we were looking for, but in hindsight, we wish we had explored other options that could have helped us grow our real estate investment portfolio. If we had taken a different approach, we might have built more long-term wealth. But more on that later!

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2. Buying a New Home Before Selling Your Current One

Another option is to avoid temporary housing and move directly from your old home into your new one. However, this requires more financial flexibility, as you’ll need to qualify for two mortgages. If you don’t have the cash available for a downpayment, you may be able to use a financing tool like a bridge loan or a HELOC (Home Equity Line of Credit) to access your home’s equity before selling. The idea here is that you take out a short-term loan to purchase your new home, then you pay it off at the closing of your previous home.

Pros:

✅ No temporary housing stress: Move straight from your current home into your new home.
✅ Less pressure to sell quickly: You can take your time preparing your current home for the market to get the best price.
✅ Potential for higher sale price: If you’re not in a rush to sell, you can wait for the right buyer and maximize your profit.

Cons:

❌ Need to qualify for two mortgages: Unless you have significant savings, you’ll need to prove to a lender that you can afford both homes at the same time.
❌ More complex financing: You may need a HELOC, bridge loan, or other creative financing solution to fund your next home’s down payment.
❌ Increased carrying costs: Until your old home sells, you’ll be responsible for two mortgages, utilities, and maintenance.

Who is this best for?
This option works well for homeowners with strong financials who want to avoid the disruption of temporary housing. It’s also a good fit if you’re confident in your ability to sell your current home quickly and for a strong price.

Many of our clients are surprised—and relieved—to learn that this is a viable option for them. While you do need to demonstrate that you can afford both homes, holding onto your current property won’t impact the interest rate on your new mortgage. This opens up possibilities for those who want to move forward without the pressure of selling first.

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3. Keeping Your Current Home as a Rental Property

Now we come to what might be our favorite option. If you’re interested in real estate investing, keeping your current home as a rental can be an excellent strategy for building long-term wealth. Instead of selling, you turn your existing home into an income-generating property while purchasing your next home as your primary residence. One of the biggest advantages? You get to keep the original interest rate on your home loan, even after converting it into a rental. If you were lucky enough to secure a low mortgage rate—especially those 3% rates from the COVID era—holding onto that property (and that rate) could be a smart financial move for the future.

Pros:

✅ Builds long-term wealth: Holding onto real estate allows you to benefit from property appreciation and rental income.
✅ Lower interest rate on investment property: Since you originally bought your home as a primary residence, you’re likely locking in a lower mortgage rate than you’d get on a new investment property.
✅ Potential tax benefits: Rental properties come with tax advantages like deductions for mortgage interest, maintenance costs, and depreciation.
✅ Creates a backup plan: If you ever want to move back or sell later when the market is stronger, you have the option.

Cons:

❌ Need to qualify for two mortgages: Just like buying before selling, you must prove to a lender that you can afford both properties.
❌ Becoming a landlord: Managing tenants and maintaining a rental property comes with responsibilities, even if you hire a property manager.
❌ Tied-up equity: Since you won’t be selling, you won’t have access to the full proceeds of your current home’s value unless you use a HELOC or cash-out refinance.

Who is this best for?
This is a fantastic option for anyone interested in building a real estate portfolio and generating passive income. If you can qualify for two mortgages and are comfortable with the idea of being a landlord (or hiring a property manager), this could be the best financial move you ever make.

Looking back, we really wish we had taken advantage of this strategy. While moving from house to house can be a bit of a hassle, it’s one of the best ways to secure the lowest interest rates. The formula is simple: buy a home, live in it for at least a year, make some improvements, and then purchase your next one. Rinse and repeat—and watch your real estate portfolio grow!

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Next Steps: Putting Together Your Team

If you’re considering making a move, the most important thing is to assemble your team early on. Here’s who you’ll need:

1. A Real Estate Agent – We’ll help you strategize your move, whether that means selling, buying, or keeping your home as an investment.
2. A Lender – Talk to someone like Julie to get pre-approved and understand your financial options.
3. A Property Manager – If you're considering keeping your home as a rental but don’t want to handle the management yourself, consult with a property manager. They can help you determine the market rent for your home and break down the costs associated with professional management, giving you a clear picture of what to expect.

Book a Housing Consult with UsWe offer free housing strategy sessions where we discuss your goals and create a personalized game plan. You can schedule a call with us and we’ll meet via Zoom or in person at our office in Fremont.If you’re considering buying your next home in Seattle, let’s chat! We’d love to help you make your next move as smooth as possible.📩 Contact us today to set up a consultation!