Should You Sell Your House Or Rent It Out
Vložit
- čas přidán 6. 09. 2024
- One of top ways people begin investing in real estate is by buying their first home and then either selling for profit or renting it out and becoming a landlord.
But should you sell your house or rent it out?
In this video, 3 experienced real estate investors discuss which option is best & most profitable!
If you enjoyed this discussion, make sure to subscribe and watch the full episode of the BiggerPockets Podcast Show #336, releasing Thursday 6.27.19
What do you think? Let us know in the comments!
Join our community! - www.biggerpock...
Real estate investing is hands down one of the best ways to achieve financial freedom regardless of what the market is doing. Great stuff!
What about now with the whole pandemic that took place??
Benefits to both. Just like most other decisions it is never black and white. Best to know your options well enough to make your own decision.
I don't particularly want to sell, but... selling would provide the capital and cushion to be able to start investing in rentals full-time. It's a tough choice, to be sure. Thank you for your thoughts on the subject.
If ever I have spare house. I rent it first, and use the income to invest to another house and sell it.
Im planning on refinancing to get some cash out and renting my house out a$ap! Price of rent is unbelievably higher than price to own in my area.
Is this still true in today's market?
Market is at a sellers hi now and my condo has been rented out for the past 2 years making me a Thousand dollar a month clean.
If I sold my house now I can make 400,000 out right after paying all the expenses and taxes... I have a management company taking care of the house but since I moved out of the country and perhaps want to buy a house right now live I’m considering of selling but I don’t know if it’s the right thing to do.. Wonder if you can give me a quick thought
I bought a condo in NJ with no intention of it being a rental (I’m 25). Unfortunately found BP shortly after the purchase. Lived in it for 1.5 years before relocating to Texas for a better job, better life, etc. it’s on the market now...for what I could get for rent I’d only be cash flowing $100 MAX. I have family in the area but wouldn’t be able to pay a property manager. Should I just rent it out or sell it?
There are mounting indications that the economy is headed for a downturn in the next 6-20 months, so if the numbers make sense, I'd sell it now.
@@jamilynn322 hopefully he didn't listen to you and sold it a year ago
@@jamilynn322 this didn't age well..
I can see why David moved to Hawaii, he looked pretty lonely on that Macbook screen. lol!
Why would it be less risky to have only a few properties. Make no sense. More properties, is more rent coming in, more insulated from large expenses.
More properties also means more expenses. Expenses are a definite. Profit is not - especially if you're new.
@@bduelz Youre not going to have alot of properties more than likely if you know what youre doing.
@@jayc4715 Yes, more tenants is more income and less risk per property. Spikes in expenses are more spread out across a portfolio of properties.
@@Trenttabor Let's say 1 property worth of expenses could be $500/month. All things considered equal, In a worst case-scenario it's easier to take care of $500/month than $5000/month if you had 10. That's how people go bankrupt.
I think what he was saying was.. if you're already buying on thin margins, it's a lot riskier with bigger deals.
Tnx
So if I bought my primary in June of 2016 and moved out of it November of 2019 and turned it into a rental so I have to sell it before November 2021 to avoid capital gains or do I have until November of 2022?
I’m a little confused on this it was my primary for I believe 5 years before I rented it out and purchased my new primary.
My understanding is that you count 5 years backwards from the date of sale (closing). If you lived in it 2 years out of the 5 years as a primary residence you qualify for the capital gains exclusion up to $250,000 for a single person, $500,000 for married couple. The two years don't have to be consecutive. It looks like you would you would avoid capital gains tax if you sell it before November 2021 since it seems like you lived in the house 3 years (June 2016 to November 2019). You might have until November 2022. I'm not a CPA or financial advisor so you should double check this with an accountant. I'm talking to an accountant regarding this issue in my situation.
I have a house mortgage 1,500, 20yr loan and only owe 180,000, can refinance for 30yr loan at 4% drop payment to 1,100 a month with taxes and ins, the house can rent for 1,900 a month cash flowing 800 a month and have a Heloc for 60,000 for the BRRRR. Selling the house I make 80,000 before commission and expenses. What makes more sense.
You have to account for other expenses like repairs, Capex, vacancy, etc... so cash flow is not 800
@@ibrahimdharhan3174 yes of course I understand that, I bought the house brand new 15 years ago and keep everything up on it. So repairs would be minimal.
Joel I am in a similar position as your post. What did you end up doing? Thanks
@@er5490 Hello after speaking with my accountant she advised me that I not mix my personal home with investment a home since tax wise it's possible to lose certain tax benefits of a personal home if in the future I decided to sell. She is a investor herself and has many properties. So I am saving for a rental and will be doing a Heloc when I get enough for a 20% down then I won't have to rely on borrowing more expensive money that could eat into my profits like hard money loans. It's better to be patient and have a plan then jump into a mistake.
I bought a hime for $130,000 is worth now $220,000
3 Rooms, 2.5 bathrooms, car garage, fireplace.
Should i Sell it or rent it out? Any advice would be greatly appreciated thanks.
What did you end up doing? I'm in a similar situation now. Any advice?
How about the depreciation?
Let say you bought the house for 250k and now it’s worth 500k. If you convert to rental, you can only depreciate to 250k. You’re loosing 9k per year on depreciation exp
jjoven1225 you have to realize the depreciation when you sell. The short term benefit might not be as nice as the huge hit at the end. If you leave it for your kids that would nice though 👍
bruno would have said otherwise