As a homeowner, you have two options when it comes to maximizing your investment: sell your home or rent it out. Which is a better option? The answer is usually, “It depends.”
There are several factors to consider when it comes to deciding whether to sell your home or rent it out, and everybody’s situation is a little different.
With current housing inventory still at an all-time low and the demand for homes still at an all-time high, it really is a great time to sell your home, cash out your equity, and roll into your next home purchase. That said, some homeowners do consider keeping their home and renting it out, which is great, but if you’re considering this, just remember that you will be starting a rental business.
Many people simplify this and think that the best option would be to rent their home out in order to put a few extra bucks in their pockets, but the reality is that there is a lot involved in the rental business. For example, you have to consider establishing escrow accounts, tenant background checks, home maintenance and upkeep, possible evictions and vacancies, as well as insurance and tax implications.
Renting out your home does allow you to capitalize on future equity opportunities and create some monthly cash flow, but on the other hand, the market favors sellers and prices are at or near all-time highs. This means that your equity position may be such that you can capitalize on some gains.
If you’d like to learn more about your best options as a homeowner, don’t hesitate to give me a call or send me an email with any questions you may have. My team and I would be happy to get you moving in the right direction!
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