Updated over 3 years ago on . Most recent reply
Should I sell or rent?
I have a home at the beach and I was trying to short term rent it and have not been having a good experience. The market seems far more saturated now for STR, and all the renters have been partying and over occupying the home. I have had to get cops involved twice and the ring doorbell showed what looked to be drug deals going on all night during the last occupancy. I know my neighbors as I lived there 10 years and I don't want to do this to them.
My question is, the home is paid off and in a desirable area. I could rent it for $3,000 a month or put it up for sale. A few months ago I think I would have gotten $600,000 but now after the last rate hike I am worried about selling it. I think I would get (hopefully) $550,000 but I am worried it may sit or I get low ball offers with everything going on. I don't "need" the money right now so should I sell or hold? If I sold, I would put half towards my current principle and the rest on stand by for future deals. If I hold, I would just the cash flow for monthly expenses. Thank you and look forward to your feedback!
Most Popular Reply
#2 Starting Out Contributor
- Realtor
- Hanover Twp, PA
@Justin R McCullers, If you occupied the home as a primary residence 2 of the previous 5 years you have an exemption to a certain amount of income tax if you sell. If you qualify for that, you may want to sell to avoid a larger tax bill selling later on.