{"id":83838,"date":"2021-06-21T09:30:00","date_gmt":"2021-06-21T15:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=83838"},"modified":"2023-03-29T01:19:25","modified_gmt":"2023-03-29T07:19:25","slug":"sell-or-rent-house","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/sell-or-rent-house","title":{"rendered":"Should You Sell Your House or Rent It Out?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC6202630929&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p>Sometimes, you can only live on your property for so long until something comes up and you have to relocate. Maybe that\u2019s by choice, or work is forcing you to do so. Maybe you like the idea of earning some passive income. Either way, you have to face the question eventually: Should I sell my house or rent it out?<\/p>\n\n\n\n<p>Although it sometimes is difficult, owning two homes can actually work and be profitable if you rent out the previous home. By keeping the house, you can begin building serious wealth through cash flow and equity. It\u2019s not the right move for everyone, so how do you know if it\u2019s right for you?<\/p>\n\n\n\n<p>As with most real estate questions, these are not universal \u201cright or wrong\u201d questions. But once you understand the options, you can make the best choice for your situation. Not every home makes a good rental, and not everyone is cut out to be a landlord. Here are some reasons to rent out your second home.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent: Positive cash flow<\/h2>\n\n\n\n<p>The first thing to look at when deciding whether to rent or sell your house is the math. Math probably wasn\u2019t your favorite subject in school, but luckily you don\u2019t need to know too much of it to understand real estate investment math.<\/p>\n\n\n\n<p>When your property is rented out, and you deduct all of the associated expenses like mortgage, taxes, insurance, utilities, management, vacancy, repairs, HOAs, etc., will the property produce a monthly profit or a loss? If you\u2019re gaining a profit, keep it. When you consider the money you\u2019d earn from renting it out, you will gain even more from the property in the long run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent: Make a return on your investment<\/h2>\n\n\n\n<p>Next, consider how much you would profit if you sold the property today, assuming you\u2019d lose around 10% to agent fees, closing costs, and other sales expenses. If you would make little or nothing, it may be advantageous to hold on to the property and wait for the market to improve over time. This is especially true if the property will provide a cash flow and appreciation, especially if you rent it out in the meantime.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n  <div id=\"posts_lists-block_60b7d899a1a2d\" class=\"  my-10\">\n    <div class=\"\">\n      <!-- Column One -->\n      <div>\n                  <h2 class=\"mt-0 mb-1 js-toc-ignore\">\n            Are you ready to be a landlord?          <\/h2>  \n                  \n                  <div class=\"mt-1 mb-0 text-sm mb-2 excerpt\">\n            Learn more about the landlording journey on BiggerPockets.          <\/div>\n        \n                  <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"no-underline text-themeBlue-medium hover:underline uppercase font-semibold text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n        \n        <div class=\"grid grid-cols-1 gap-y-4 lg:gap-y-7 mt-5\">\n          \n<article \n\tid=\"post-188171\" \n\tclass=\"content-card mb-0 flex flex-col  post-188171 post type-post status-publish format-standard has-post-thumbnail hentry category-landlording\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/does-your-real-estate-investing-platform-cater-to-your-investment-type-heres-why-it-should\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/03\/bigdata-in-real-estate-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Does Your Real Estate Investing Platform Cater to Your Investment Type? Here\u2019s Why It Should\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">2 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/07\/cropped-profile_small-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2026-06-10T09:16:14-06:00\">Jun 10, 2026<\/time><time class=\"updated\" datetime=\"2026-06-10T09:16:17-06:00\">Jun 10, 2026<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/annacottrell\" class=\"no-underline line-clamp-1\" target=\"_blank\">Anna K. Cottrell<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/does-your-real-estate-investing-platform-cater-to-your-investment-type-heres-why-it-should\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tDoes Your Real Estate Investing Platform Cater to Your Investment Type? Here\u2019s Why It Should\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">This article is presented by Propstream. The world of real estate investing is almost unthinkable today without software tools geared toward generating leads, calculating risk, and working out a viable&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"188171\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-188171 -->\n<article \n\tid=\"post-187838\" \n\tclass=\"content-card mb-0 flex flex-col  post-187838 post type-post status-publish format-standard has-post-thumbnail hentry category-landlording\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/18-percent-of-landlords-are-not-raising-rent-but-should-you\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/11\/for-rent_canva-6-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"18% of Landlords Are Not Raising Rent\u2014But Should You?\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">5 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2026-05-11T10:40:00-06:00\">May 11, 2026<\/time><time class=\"updated\" datetime=\"2026-05-11T11:14:44-06:00\">May 11, 2026<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/18-percent-of-landlords-are-not-raising-rent-but-should-you\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\t18% of Landlords Are Not Raising Rent\u2014But Should You?\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Many landlords are playing the long game. That\u2019s the conclusion drawn from a survey by rental property management platform Avail (Part of Realtor.com), a partner of BiggerPockets, in their 2026&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"187838\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-187838 -->\n<article \n\tid=\"post-187724\" \n\tclass=\"content-card mb-0 flex flex-col  post-187724 post type-post status-publish format-standard has-post-thumbnail hentry category-landlording\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/deed-theft-and-fraudulent-tax-lien-sales-are-spreading\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/09\/scams_canva-1-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Deed Theft and Fraudulent Tax Lien Sales Are Spreading\u2014Here\u2019s How to Make Sure You Don\u2019t Fall Victim\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">4 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2026-04-29T10:11:36-06:00\">Apr 29, 2026<\/time><time class=\"updated\" datetime=\"2026-04-29T10:11:39-06:00\">Apr 29, 2026<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/deed-theft-and-fraudulent-tax-lien-sales-are-spreading\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tDeed Theft and Fraudulent Tax Lien Sales Are Spreading\u2014Here\u2019s How to Make Sure You Don\u2019t Fall Victim\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Because of the large sums of money involved, real estate is a fertile hunting ground for scammers, and one of the most profitable scams is spreading outwards from New York:&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"187724\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-187724 -->\n<article \n\tid=\"post-187186\" \n\tclass=\"content-card mb-0 flex flex-col  post-187186 post type-post status-publish format-standard has-post-thumbnail hentry category-landlording\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/landlord-responsibilities\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/landlord-law_canva-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"4 Things Landlords Are Responsible For When Renting to Tenants\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">7 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/cropped-Tony02-1-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2026-03-13T13:16:03-06:00\">Mar 13, 2026<\/time><time class=\"updated\" datetime=\"2026-03-13T13:16:05-06:00\">Mar 13, 2026<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/tonyrobinson\" class=\"no-underline line-clamp-1\" target=\"_blank\">Tony Robinson<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/landlord-responsibilities\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\t4 Things Landlords Are Responsible For When Renting to Tenants\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">This article is presented by Steadily. Most real estate investors can tell you their ROI down to two decimal places. They can walk you through their expense ratio and their&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"187186\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-187186 -->        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  \n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Rent: Waiting out a bad market<\/h2>\n\n\n\n<p>Of course, we don\u2019t have crystal balls, but trying to gauge where the market\u2019s going is not impossible. Take a look at the growth of your city\u2014is it moving away from you or toward you? Are businesses moving into your area? Are homes being fixed up or left to rot? You can\u2019t know with 100% certainty, but by analyzing the current trends in your market, you can make a more informed decision on what to do moving forward.<\/p>\n\n\n\n<p>All of this information will help you determine what the future will look like and how your neighborhood\u2019s value will increase or decline. Besides, it makes sense that buyers or renters want to come to an area where new, exciting things are happening. If you aren\u2019t sure or want a more seasoned opinion, talking to a real estate agent could be a great option.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent: Option to return to the property<\/h2>\n\n\n\n<p>Listen, no one will judge you for loving your home. With such a huge investment, we\u2019d hope you\u2019d at least like it. So if you\u2019re hoping to come back to it one day, renting may be the best of both worlds for you. That way, you still own the home, and you\u2019re able to plan for a future with it while in the meantime renting it out for passive income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rent: Having someone pay your mortgage<\/h2>\n\n\n\n<p>It may sound funny, but it\u2019s true. If someone else is paying you rent to live in your home and you\u2019re not living with them, it makes more than sense to charge them enough to cover your mortgage. For many people, paying one less bill helps eliminate stress while allowing them to keep the property.<\/p>\n\n\n\n<p>We&#8217;ve discussed reasons to rent out your second home. So now it&#8217;s time to go over why selling may be the best option.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Free Real Estate Webinars<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Shortcut the learning curve by attending a BiggerPockets webinar. Hosted by expert real estate investors, you&#8217;ll learn how to master the basics and get tips for finding your next deal. Check out what&#8217;s available and register for an upcoming session!<\/p>\n\n\n\n<div id=button-custom-event-block_6418deb7ecd3a class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/webinars\" x-on:click=\"window.analytics.track(&#039;Block Block | Subscriptions | Webinars&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/sell-or-rent-house&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Register for an upcoming webinar<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Untitled-design-20.png\" alt=\"register for a free webinar\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Better ROI through a sale<\/h2>\n\n\n\n<p>If you would make a profit by selling, consider your return on investment (ROI). For example, if you could make $100,000 in profit by selling your house and achieve only $1,000 per year in cash flow, that\u2019s a 1% ROI. It\u2019s better to take that $100,000 profit and invest it in something else that could produce a higher return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Fewer taxes to pay<\/h2>\n\n\n\n<p>Keep in mind that tax benefits for homeowners typically only count toward the primary residence. Unfortunately, you can only have one of those at a time, and since we\u2019re talking about a second property here, those benefits wouldn\u2019t help you out.<\/p>\n\n\n\n<p>Also, consider how much you pay for both homes. For many people, it would be rough to be able to maintain them both. And depending on where you live, you could be paying a lot in property taxes alone. Think about the taxes you\u2019d have to pay on not only your primary but your secondary residence. Do the math even if you don\u2019t want it, and make the best choice for yourself.<\/p>\n\n\n\n<p>Consider the fictional case of Bob and Marge, who bought their home in 1990 for $150,000. Today, they can sell the property for $500,000, clearing $300,000 after the sales expenses. If they keep the home as a rental for, let\u2019s say, five years and then sell, they\u2019ll potentially owe $60,000 in taxes. But if they sell now, they can potentially keep that $300,000 in profit without paying any capital gains tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Don&#8217;t have to deal with tenants<\/h2>\n\n\n\n<p>Honestly, many people are not cut out for the landlord&#8217;s life. While some tenants are a dream to manage, others require significant time and patience to deal with. Granted, being a landlord is a skill that you can learn, and just because you are one doesn\u2019t mean you have to involve yourself with tenants directly. But if you choose to keep that kind of distance, you\u2019d have to hire someone else to bridge that gap, which is another expense. Property managers would be able to do that for you, but it&#8217;s best to avoid extra expenses if you\u2019re looking to save money.<\/p>\n\n\n\n<p>Also, consider the kind of person you are. Are you swayed by sob stories? Would you postpone filing eviction because your tenant called you with one? You may say no and that you\u2019re able to hold your ground, but be honest with yourself when you answer this one. Tenants will push your boundaries so they can have more time to pay their rent. Landlords have to defend those boundaries and operate with the smooth efficiency of a business. When someone is late on their payments, there are two consequences: a late fee and filing to begin the (long) process of eviction. If you can\u2019t do that, that\u2019s completely fine. But you\u2019re probably not cut out to be a landlord.<\/p>\n\n\n\n<p>On top of that, you have to realize that renting isn\u2019t a guaranteed form of income. If you and the tenant have some issues or they choose not to renew their lease, you could be out of that income for months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Avoid extra expenses<\/h2>\n\n\n\n<p>Beyond your mortgage payment of principal, interest, taxes, and insurance, you\u2019ll incur plenty of other expenses if you rent:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Vacancies<\/li>\n\n\n\n<li>Property management fees<\/li>\n\n\n\n<li>Capital expenditure and repairs<\/li>\n\n\n\n<li>Maintenance<\/li>\n\n\n\n<li>Administrative, bookkeeping, and miscellaneous<\/li>\n\n\n\n<li>Other fees depending on the property and where you live<\/li>\n<\/ul>\n\n\n\n<p>The 50% rule states that your expenses will run around 50% of the rent\u2014not including any financing like principal and interest that you pay. If the rent is $1,000, and your mortgage payment (principal and interest) is $400\/month, you can expect roughly $500 in additional expenses, leaving you with a cash flow of $100\/month.<\/p>\n\n\n\n<p>The golden rule of cash flow with rentals is that it\u2019s based on a long-term average of your expenses, not on what happens in a typical month. In a typical month, you\u2019ll just pay your mortgage payment. Then suddenly, you\u2019ll be slapped with a $3,000 roof repair bill.<\/p>\n\n\n\n<p>Get comfortable with the numbers in your neighborhood. How much can you expect to rent the property for? What\u2019s the average vacancy rate? If your property has carpets, what will it cost to replace them between each tenancy? These are some of the most important questions that need to be answered with certainty and honesty. Also, you need to have an answer you&#8217;re comfortable with before you decide to rent out your second home.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Fleeing a buyer&#8217;s market<\/h2>\n\n\n\n<p>Sometimes the housing market goes up\u2014other times, not. If many people are selling their homes in the same area that yours is in, it might be a sign that you should also consider selling. However, lots of sales at one time could mean the value of your property drops quickly and leaves you with less economic standing. If you see that possibility on the horizon, selling may be a good option for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: The property makes a poor rental<\/h2>\n\n\n\n<p>Be honest with yourself and your property. Does it serve you best as a rental? Or invested elsewhere? The last thing you want is to keep your old home as a rental property, have it cash flow poorly, and then you throw your hands up and say, \u201cRentals are not for me.\u201d These kinds of investments are both an art and a science, and just because a property made a good home for you, it may not make a good rental.<\/p>\n\n\n\n<p>Run the numbers. If you like what you see, move forward. If not, sell the property and invest the proceeds elsewhere. And if you decide that being a landlord is not for you, you have other options for investing in rental real estate. You can buy it and hire a property manager. You can become a silent partner and have your partner handle all management. Or you can step back even further and invest in private notes or real estate investment trusts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sell: Fund better rental investments<\/h2>\n\n\n\n<p>Just because your old home may not be a prime candidate for a rental investment doesn\u2019t mean you shouldn\u2019t become a landlord. Imagine you sell your home and walk away with $50,000. You use $25,000 as a down payment on a fourplex, which cash flows $500\/month. Then, do the same thing with the other $25,000. If you can rent out all of the spaces quickly, you could easily earn thousands a month in rental income.<\/p>\n\n\n\n<p>Of course, this may not be the case for you because the home you already own would actually be a great property to use as a rental. It\u2019s also possible that you don\u2019t feel confident in your ability to buy rentals that will cash flow in your market. Regardless, these are all questions you will need to ask yourself before deciding on keeping or selling your second home as a rental.<\/p>\n\n\n\n<p><em>If selling is the right move for you, <\/em><a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\">quickly match with an investor-friendly real estate agent<\/a> <em>who specializes in your market<\/em><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Should you rent or sell? As with most real estate questions, there is no universal \u201cright or wrong\u201d answer. But once you understand the options, you can make the best choice for your situation.<\/p>\n","protected":false},"author":710,"featured_media":138674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,6804],"tags":[],"class_list":["post-83838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-buying-selling"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/83838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=83838"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/83838\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/138674"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=83838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=83838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=83838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}