When you’re measuring the pros and cons of renting vs. selling in Chapel Hill, NC, there are a few things that you must consider. It’s important to make the decision that’s right for your financial position and your plans for the future.
Analyzing Your Investment Return
Finding a seven cap return or better is the ideal situation, but in Chapel Hill, it’s hard to find and hold a property that will get you there. Investment sales are still rather stagnant, which is one argument for holding onto a home and renting it out. Most of the Chapel Hill inventory right now is selling at a five cap range, or maybe a five and a half cap range. That isn’t going to provide the return that most investors want.
Many homeowners who decide to rent do so because they cannot sell their house, or they don’t want to part with the asset. If you’re in that situation, take a close look at your financial requirements and think about what will be best. You might lose money if you sell your home, but you also run the risk of losing money on a monthly basis when you’re renting a property. If you rent it out for two or three years for less than what you need, you stand to suffer the same loss as if you were to sell it right away. Consider selling it for what you can right now so that you don’t have to watch yourself lose money over an extended period of time.
Work with a Property Manager
If you do decide to rent out your property, make sure you get help from the best property management company you can find. You’ll need to pay a management fee, and it will take some time for rental income to start flowing because you can wait a few months before you find a good tenant. Property managers know how to protect your property and make your situation as successful as possible.
Please contact Mill House Properties if you have any questions.