If you want to purchase another home and you have the choice of selling your current one or renting it out and turning it into an income property, then you may be conflicted on which you should do. The best way for you to come to the right decision is for you to go over some of the positive things that each option will give you. Here are some positive aspects of selling your home and some positive aspects of renting it out and turning it into an income property:
Positive aspects of selling your home
No more responsibility – When you sell your home, you won't have to worry about taking care of it. You won't have that monthly mortgage to pay, you won't have to pay those monthly utility bills, you won't have to worry about continuing to pay the yard maintenance company, you won't have to worry about keeping up with repairs. All of the things that come with owning that home will no longer be on you once you sell it to someone else.
Get the money – Of course, one of the great parts of selling a home is getting that money when Escrow closes. When you have that money hit your bank account, it will generally be enough for you to do many different things that you have wanted to do. Depending on the amount you sold your home for and the amount you still owed on it, you may have enough to start another business or make some big purchases you have always wanted to make. Of course, you could always put it in savings to give yourself a nice cushion.
Positive aspects of renting the home out
It will continue to earn equity – When you do sell a home, you will get a price for it that is based on its current worth. However, if you rent it out and turn it into an income property, then you can continue gaining equity on it. This means you may be able to sell it at some point in the future for much more money. It's nice to have that security, knowing you can sell it in the future, should you need to.
You will have a steady stream of income – It can be nice to have a rental property. You can charge the renters more than the mortgage and profit from what goes over that amount. You do want to make sure you have good renters, or they can end up costing you money if they destroy the place.
You can have it managed by a property management company – You can turn over the job of handling your property to a community manager. They will take care of everything having to do with renting the place, collecting rent, taking care of maintenance issues, getting it ready for the next renter and anything else that needs to be done when renting it out.Share
26 April 2018
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.