When you have a property that you aren’t going to live in, and you’re faced with the decision of whether to sell or rent in Tampa, FL, there are several things that you need to consider.
Can You Afford to Sell?
Property values dropped dramatically a few years ago. While they are climbing back up, many owners are still in the position of owing more on their mortgages than their homes are worth. That means selling your property now could mean losing money. You’ll need to decide whether you’re willing to take a loss and if you have the funds necessary to close the sale and pay the remaining balance on your mortgage.
When you are desperate to sell, short sales can seem like an ideal solution. That’s not always the case. A short sale will have a negative impact on your credit rating and you’ll need to get your lender to agree. You might be responsible for the money you owe after giving your house up in a short sale. If this is your only option for selling, you might want to consider renting that property out instead.
Long Term Investment Gains
If you are making this decision because you’re leaving the area, think about whether there’s a possibility that you’ll return. You might want to keep the home as an investment property or you might want to live in it someday. Renting out a home will allow you to keep making money on it in the short term. You’ll earn cash flow by collecting rent payments. It also allows for long term investment growth.
Ultimately, this decision comes down to money. Talk to a property manager so you know what homes similar to your property are renting for in the current market. Think about the costs of keeping the property and what you’ll have to budget for repairs and maintenance. Tax implications also exist based on the decision you make. When you keep the property and rent it out, you can write off costs such as maintenance and property management fees.
Investing in real estate has always been a wise and potentially lucrative idea. With the market improving for both rentals and sales, this is a decision you need to make carefully. Contact Rent it Network for help deciding whether to rent or sell your Tampa home.