If you have reached the point of needing or wanting to purchase a new home, you need to decide what to do with your existing house. The majority of homeowners decide to sell their house when moving; however, there is another option. Homeowners interested in becoming real estate investors are deciding to turn their current house into a rental property. While this can be a profitable option, it should not be taken lightly. If you are wondering “should I sell my house or turn it into a rental?” here are some things to consider.
The market can be a big factor in deciding whether to sell or rent your house. If the market in your area is down and you will lose money on your house if you sell, you may need to consider renting it. However, not all markets are good for rental properties. Before deciding which route to go it can help to talk to a real estate agent about your options. Find out what the current value of your house is and what similar homes are renting for in your area.
Before turning your house into a rental property, you need to find out if you can afford it. Your carrying costs for the property will include some or all of the following: mortgage payment, insurance, property taxes, HOA fees, maintenance, and some utilities. Once you know the carrying costs of the rental house you can determine what you can rent the house for. Will you be breaking even or can you make money? There are times when breaking even makes sense if homes are appreciating in the area and you could sell it down the road for a higher profit.
Before finding a tenant really consider if you want to be a landlord. When you sell a house you can wipe your hands of it and walk away. When you rent a house any issues that come up with the property are yours to handle. Even if you hire a property management company you are still the one ultimately responsible. The problems you face might not be with the house itself, it could be with the tenant. Not all tenants are good ones. Carefully consider if you want to handle these issues if and when they arise.
Rental properties need to meet a certain standard to have tenants. There is a chance that you will need to make repairs or updates to your house before renting it. That means you will be investing both time and money into the property. On the other hand, when you sell your house you have more options. You can invest money into getting your house in move-in ready condition to attract buyers, or, you can sell to an investment company.
If you think through “should I sell my house or turn it into a rental” and decide that you want to sell it, MP Home Buyers can help. We buy houses for cash. That means when you are ready to sell you don’t need to invest time and money into your house. We will buy it from you, for cash, as-is. For homeowners that don’t want to become landlords this is a stress-free way to sell your house and move on. Stop wondering “should I sell my house or turn it into a rental” and contact us today to find out what your options are.