Hey everyone. I currently live in my townhouse purchased 6 years ago in Calgary, Alberta. We are in the process of moving out and have to decide whether to rent it out or to sell it. As many of you may know, the market in Calgary has had a bit of a rough go over the past year and a half but it does seem to be recovering. That being said, for rent I won't be able to cash flow, just (hopefully) be neutral, I am surrounded by a huge number of condo and townhouse complexes, and it isn't the type of property we are looking to use as our niche going forward. Does it make sense to just pull out and start fresh doing suited bungalows (the niche we're going after) or should I just call it an ace in the pocket, leave it alone for a few more years and hope that 1) it gets rented and 2) that rents increase a little bit? Any thoughts and suggestions are welcome.
I think it depends on a few factors like where you see the market going in the next few years. I personally see oil recovering a little bit and more tech companies potentially moving to the city. This should improve the market in the next 2-3 years but on the other hand oil may never recover...
Do you need the capital for another deal/opportunity? If you do, it may be worthwhile to sell the townhouse in order to purchase your next deal. Think of it like this, when the market is low, you won't make a killing selling your townhouse but you also won't pay as much for your next deal. When the market is higher, you get more from the sale but you'll also end up paying more.
Where is your townhouse located and would you consider short term rentals? I've been able to cash flow pretty comfortably with Airbnb instead of longer leases. It is a whole different game and will take more work.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing