Decisions, Decisions... Should You Rent or Sell Your House?
You might be entertaining the idea of leaving your house for a new one, this could be for many reasons. For example, you might want to relocate, you may have a growing family and need more space, you may be wanting to downsize, or have other reasons not listed here. Whatever your unique situation, lets face it; the whole process is just plain confusing! The question however, remains the same. “Should I sell my current residence, or should I keep it and rent it out for another family to enjoy?” There is no short or easy answer. It ultimately comes down to personal preference, and what works best for your situation. Both have their pros and cons, so you must ensure you educate yourself prior to making a final decision.
There are several factors that you must consider prior to starting this Journey. You should ask yourself the following questions.
When Considering the Possibility of Renting Your Home, Ask Yourself…
Will I profit from renting my home?
Before listing your home, be certain that it will generate a positive cash flow. You might be asking yourself “Will I have to start a basic calculation?” The answer, yes. You create this calculation by taking all the expenses present when renting out your home, and subtracting these expenses from the income you would receive from being a landlord. The common expenses include the mortgage, repairs, insurance, HOA/management fees if applicable, and taxes.
Will I be able to handle being a landlord?
Being a landlord might just be one of the most stressful positions you put yourself in or it might be something you really love. According to CNN,there are 4 questions you will want to be able to answer before taking the plunge into being a landlord. This is because you won’t have much control if any over your tenants. Tenants can be categorized in three ways. The first, they could be fantastic! They usually pay their rent on time, follow all restrictions if any are present, and when they move out your home is in great condition. Then of course you have the opposite. The tenants that were almost always late on their rent payments, paid no mind to your restrictions, and unfortunately left your house looking a little worse for wear. Finally, you have the tenants that fall in the middle. These tenants were probably decent, maybe were late paying once in a blue-moon, or they paid on time but left your home in worse condition than it was when they moved in… Either way, dealing with the constant phone calls, or emails that may come in at the most inopportune times just to tell you something needs repaired, or they may just want to complain about something is frustrating. Not to dissuade you from being a landlord, but it can be stressful. Yes, there is always a possibility of hiring a property management company. In doing so, a property manager would make your life less stressful, and would provide you with more comfort. But keep in mind though, this comes at a cost. This cost is typically 10% of the rental income.
Is there a possibility that I may be coming back to my home?
One of the amazing things about renting is you can be confident you will always have somewhere you can call home if things go awry. There is something about having that security net, if you are unsure where your life may take you, this would be a great option! Another pro that comes with renting your home, is that it can be either a temporary solution or permanent one. The possibilities are endless. You can rent for as long or as short as you want to. The only person that can make that call, is you.
When Considering the Possibility of Selling Your Home, Keep These Things in Mind…
A downpayment will be necessary.
Typically most homebuyers decide to sell Waco home fast because it allows for a significant cash injection. What is a cash injection you ask? Cash injection is an amount of cash that is usually enough, if not more than enough to cover the down-payment on their new home. By making a significant down-payment, it will put you in a much better financial position which allows for you to purchase your new home, a home you really want. Call it your dream home if you like.
Worries of dealing with tenants will be no more.
Some people are not comfortable with strangers living in their home. Could you blame them? I couldn’t. Dealing with tenants regardless of whether they are good, decent, or terrible is just a stressful process. Besides, without tenants you wouldn’t have to worry about what they may or may not do to your property. Furthermore, you wouldn’t have to think about other factors such as maintenance and repairs if your sell your home.
Lastly, you will be able to escape the constant fluctuation in the housing market.
If you worry that the real estate and housing market is getting worse and you fear that it will not improve in coming years, getting out now might be a good move for you. By selling your home, it allows you to generate more income now, so that in the event the market does dip a bit, or even crashes you have your bases covered. Nobody can predict the future, but ultimately it is important that you make the decision that is best for you. If it make sense, and you feel good about it go for it!
We Are Here for You!
If you ultimately make the decision to sell your home, and you are located in Killeen and want to sell your home quickly, we are here to help. We understand that the process of selling your home is not only a big decision, but it is a confusing one and it’s stressful. We get it! We strive to simplify the process for you. The best part, you don’t even have to pay for any repairs, and you won’t have to pay a real estate agent’s commission. Don’t have a place to go yet? That’s fine, you can stay in your home even after closing, we’ll work with you! If you have any questions, or are interested in selling your home to us, please do not hesitate to visit our website or give us a call today 254-331-1316.