There are obvious pros and cons to renting or selling your home. In this brief editorial we will try to touch on the important facts. Obviously, when you rent your home out, there are going to be negatives such as vacancies while your payments and taxes are still due. During the change of tenants you will be required to make repairs such as carpet, paint, landscaping, etc. Also, there is a certain amount of liability when somebody else occupies your home. You may also incur other monthly fees such as gardener, HOA dues, pool maintenance or soft water costs. Of course there is always the dreaded non-paying tenant which may need to be evicted. This is the part where most of our clients definitely see our company’s value. Although the previous items sound terrifying, the payoff can and will be tremendous. Most of our clients are hiring us because they cannot sell when the loan amount is higher than the market value of their home, want to wait the market out to realize potentially staggering appreciation rates, some because they are just simply sophisticated and savvy investors.
Either way, history has taught us that real estate is a cyclical business similar to the stock market, always goes down, yet always comes back up. What most folks need to remember is at some point the tenant will have paid down the owner’s principal mortgage which is like owning a home for free. If the property is owned long enough the positive cash flow can finance more investment properties. We have found that real estate investing, along with a stable and trustworthy property management company, is the perfect answer for building a retirement portfolio. At SCV Leasing there is almost 30 years combined real estate experience between the owners. Not only do we lease property, but have found it most important to counsel and educate our clients. We can absolutely help a homeowner decide whether their home is an asset or liability.
For a free consultation on your home call 661-294-8500.