essential questions to ask when considering selling vs. renting

Essential Questions to Ask When Considering Selling vs.

Renting

Poker buddies looking to make a quick buck, young families looking

for a profit option, retirees seeking a project, are all finding their way into

the fix and flip market. By making the repairs, putting the homes back on the market, the goal of turning a

nice profit in just a few months is attractive for pretty much everyone.

There are many addictive TV shows you may have seen highlighting the process. But when was the last time

you saw a TV show about a couple buying a house, fixing it up and

renting it out? Maybe never.

However, the rental route is a viable option for making money in the real estate market. Many factors can be

involved in determining whether fix and sell or fix and rent may be a

better strategy for you.

Let’s take a look. Remember, you can find more resources about fix and flip on CenterStreetLending.com.

What kind of an investor are

you?

It’s essential to ask yourself some introspective questions to see how you may function as the owner of a

rental property and why that investment may benefit you. 

Are you are risk-taker or are you more conservative?  

Do you have a long-term vision that will build a nest egg for your

retirement? 

Or are you looking to make a quick buck and move on to the next thing?

Fix and flip is designed to give you a quick profit. It also keeps

opportunities flexible, if you decide to move onto flipping another house

or an entirely new business route.

Of course, fix and flip also runs a great risk if you run into higher

rehab costs than you expected or hit a downturn in the housing market that cuts into your quick profit or

worse, leaves you with a loss.

Historically, home prices have increased an average of 3 percent per

year, so as you hold the property, your resale value is going higher.

Rent and hold will not net you a quickreturn on investment, but it could

lead to a long-term profit that’s even greater. First, you have the monthly

income generated by the renters. Second, your house is building equity

the longer you hold it. So these are some factors to consider.

Are you prepared to be

a landlord?

Rental properties also requires responsibilities. There are

maintenance costs involved in renting a home, but they should be

negligible in the first years if you complete an efficient rehab. 

It’s the renters who will fill your property that will require most of

your work. Do you have the patience and people skills to deal with finding the right renters and handling their

needs over a long period? 

You also can turn the home over to a property manager, but that eats into

your profit.

Find more details on fix and flipping on Center Street Lending. Follow us

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