Should I Rent or Sell My House?

Should I Rent or Sell My House?

Homeownership is something you can be proud of. Despite the craziness of housing markets in recent years, owning a house is still a great step toward building lasting wealth. But nothing says you have to live in the home you own forever. It’s perfectly reasonable to move at some point, and when you do, you’ll have to decide whether you want to sell the house or rent it.

Times to Rent

There are many reasons why so many people rent out their properties. A rental house can be a great source of additional income. It broadens your portfolio, and when invested correctly, rental equity can snowball into a lot of money. But renting isn’t right for everyone. These are three times when renting makes a lot of sense.

1. You’ve Done Your Homework

If you have done your homework and know what you’re getting into, renting can be a great source of passive income. It’s a long-term investment that can eventually contribute to your monthly income in a substantial way when you leverage equity correctly and play the tax game well.

2. You Like the Security vs. Work Ratio

You’re a homeowner, and you already know how much work that entails. A rental home will require a similar amount of work — plus the added work of caring for where you live. But if that extra work isn’t a deterrent, a rental home offers a lot of security. You get the passive income, and you get to build equity in another property. It’s nice to have that in your portfolio, provided it’s worth the extra work to you.

3. You Might Be Coming Back

If you need to move to a new location for work, family, or any other reason, it’s normal to sell your house so you have funds to purchase a home in the new location. But if you think there’s a good chance you’ll move back within the next 10 years, renting is suddenly a lot more valuable. It means you don’t have to find a house for your return. If you rent successfully, you’ll be paying off the house you plan to live in for no money out of pocket.

Times to Sell

Renting isn’t always the right answer. The truth is that even if you already own the rental house, it’s going to need some changes before it’s ready for a tenant. Those changes cost money, and you won’t get that money back right away. Plus, the burden of knowledge for renting a house is quite high. Here are occasions where selling makes a lot more sense than renting.

1. You’re Not a Property Expert

A decent amount of knowledge is required to rent out a property. You’ll need to learn the tax implications, how to find great tenants and more. If you’re not ready to do all of that learning, you can sell the place for a lot less trouble. There are entire markets of experts who can get you a good deal selling your house and make sure it’s all done correctly — all while you still make a profit off the deal.

2. The House Is Depreciating Fast

This can depend on neighborhoods and markets, but some houses aren’t going to be worth more down the road. Instead, they’re going to lose value and probably need a lot of expensive work along the way. In the wrong markets, it can be hard to recover those expenses through renting. If the house is headed in a bad direction, selling now can get you the best overall deal.

3. You Need a Lot of Cash

Often people sell a house in order to clear the mortgage and have enough for the down payment on a new place. That’s pretty normal. Other times, financial hardships might force you to downsize or otherwise change your plans. Renting is not going to put fast money in your pocket. In fact, renting often causes homeowners to lose money over the first few years. It’s a long-term investment. If you don’t have time to mature your investment, consider selling.

When You’re Under Pressure to Sell

If you need to sell a house quickly or want a sure deal, you can contact We Buy Houses Cincinnati. We’re a property investment group that buys houses on a regular basis. Simply fill out our contact form or call us at 513-878-1677, and we can get the ball rolling. We can close on your house in a matter of days if you need, and we make an offer on every single house. You can get a no-commitment offer, so if you want to explore this offer, you can do it quickly and easily.