Should you rent out your home, or sell it?
Over the last decade, the Matin Real Estate Group has developed a reputation for working with sellers who’ve tried and failed to sell their homes. One of the most common things we hear from these sellers, is that because of their bad selling experience they’d prefer to just rent out their property. To be honest, in some cases, that may be a great idea. In most cases however, renting out the home is simply not a good idea at all. The fact of the matter is, not every property can provide a worthwhile return on your investment.
When I think of a good rental property, I’m thinking about a duplex or a fourplex. Or possibly a large three bedroom, 2 bath home with about 1500 square feet of space. Now that’s a good rental! You do have to be careful however, that you’ve got the property financed in a way that gives you the best possible ROI. I suggest you talk to your lender to make sure that you’re getting the most value out of your investment.
Unfortunately what I tend to see happening, is people with a fancy home or maybe a condo, will try to use their home as a rental and they just can’t get enough return on their investment. If they’re lucky, they’ll maybe get a 4% ROI and end up just wasting their time and resources. In these cases, I recommend that the seller find a price point at which they sell their home and use their equity to purchase a duplex or another property that’s more lucrative to rent. Again, make sure you’ve financed the property in a way that makes sense, and allows you to relieve yourself of the tax burden. That way, you can write off as much as possible, build as much equity as possible and create a solid cash flow. This way, you can hopefully 1031 exchange into another rental property. Real estate is the #1 way that people are made millionaires in America and if you do things right, you can build that sort of wealth for yourself.
So, if you’re looking to get into an investment property, give us a call. Let’s talk investment properties. Or if you’re just looking for a great place to live, we can help you with that as well. Reach out to us today and we’ll help you get where you want to be.
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