A lot of sellers have come to us lately with a dilemma. They are getting ready to move into a new home, but can't decide whether they should sell their current home, or rent it out in hopes of turning it into an investment property and a steady cash-flow.
Many people choose to sell simply because they can't afford owning two homes, and they need to sell their current home to be able to purchase a new one. Others want to sell because they are moving out of the area, or want to use the extra cash for another investment. Either way, this is the option that most people choose.
Becoming a landlord is a personal decision that has both positive and negative consequences. Many of our clients are investors who view their current home as an investment property when they are ready to sell. If you are going to attempt this, we want you to keep a few things in mind:
Tenants are different, and they all bring a variety of issues to the table. You could go the route of barring smokers and pet-owners from your home, but if you do that, you may be excluding the exact people who want to rent your home.
Another thing to think about is how much equity you currently have on your home. A lot of landlords today are renting out their homes because they don't have enough equity. It's very difficult to purchase a home, then turn around and sell it 1-2 years later.
To help make your decision easier, we can go through all of the numbers for you, including the expenses to rent and the expenses to sell, so you can decide which makes the most sense for you. For most of our sellers, selling is the ideal option, but every situation is different!
If you have a question for us, or would like to set up a FREE seller consultation where we can go through the logistics with you, give us a call or send us an email. We look forward to hearing from you!