Sell or Rent My House
If you need the equity now, selling is probably your best option. Another thing to consider is whether you’ll earn more if you don’t need the equity right now. Compare what you think the property will sell for versus the cash flow you can earn over the life of a lease if you’re renting it. Take a look at the net proceeds after taxes. You can determine your ROI in both situations; whether you’re selling and taking the equity, or earning cash flow over several years.
Should I Rent My House or Sell it?
If you do sell your property, think about what you will do with the earnings. You might reinvest the money or look for a 1031 exchange. Or, if you cash out, there may be tax penalties to consider. If you’re leaning towards renting the home out, you’ll need to consider appreciation. The property will appreciate after the end of the lease term. That will carry tax implications as well.
These are just a few things to consider when you’re deciding to sell or rent. If the stock market goes down, your property value will still appreciate over time. This makes real estate investing attractive to a lot of people.
We can run an analysis on selling versus renting for you. If you have any questions about renting out your house or selling it, please contact us at HomePointe Property Management, a HomeRiver Group company. We’d be happy to help you with property management in Sacramento.