Is it a good Idea to sell or rent the home out

Is it a good Idea to sell or rent the home out

Las Vegas, NV · Member since 2018 · 9 posts · 3 votes

With me being new here and new to the Real Estate investing world I figured I'd ask you guy's for professional advice. As you know the Vegas market is hot right now and I'm fortunate to be sitting in the driver seat. I don't think anybody new the market would take off like it did. Me personally I purchased a home just to lay my head. But now it has opened my interest about investing for long term wealth and I can't get enough of this stuff lol! So here's what's going on should I sell the home and take the profits or rent the home out? I plan on moving next year, at least that's the plan I'm shooting for. Also how about an equity loan to purchase another buy in the state I will be relocating? Is this possible and a smart move? Again i'm new so chime in. The thing with renting out your home is I hear horror stories all the time. Do I want to deal with all that especially HOA's? I would love to hear your guy's stories and advice.

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Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
8y

I would have zero regrets about renting it out if you were staying in town and moving to a new home. But, if you’re leaving town AND have MASSIVE profits I would sell when you move. Those gains are tax free as your primary. I’ve had WAY more damage from leaking water supply lines than intention tenant damage, most horro stories are just that. “A friend of my friend’s dad, rented out houses once....”

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    8y

    I would have zero regrets about renting it out if you were staying in town and moving to a new home. But, if you’re leaving town AND have MASSIVE profits I would sell when you move. Those gains are tax free as your primary. I’ve had WAY more damage from leaking water supply lines than intention tenant damage, most horro stories are just that. “A friend of my friend’s dad, rented out houses once....”

  • Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    If you bought it for retail  price and you are moving out of state, I would  sell it, take the tax free profit, and buy in my new hometown once you know the market there. Renting it out minus expenses will not be a lot of money unless you bought it at a discount,  or 20 years ago.

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    Do you own it free and clear . What kind of rent can you get what are the expenses taxes etc ? You can’t borrow against its equity if you sell it so think that through .I imagine rent goes for a pretty penny there .
  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    Without numbers to look at there is no way to know what would be a better option. What is the current house payment? What is market rent? How much equity do you have in the property? You'll need to know these things before you can make an educated decision.
  • Las Vegas, NV · Member since 2018 · 9 posts · 3 votes
    8y

    I do not own the home outright. I bought the home two years ago for $149k. Mortgage is $1040 including the HOA's(Headaches!) It's a beautiful town home 2bd 2bth under 1200sqft on the SW side of town which is booming and my community is in high demand. So for future that looks strong. As for equity i'm up 50k. That's not bad for a two year hold being a first time buyer. For renting I'm assuming maybe $1300-1400 a month. I'd have to talk to realtors and other renters in my area and see what they're paying.

  • Las Vegas, NV · Member since 2018 · 9 posts · 3 votes
    8y

    I will do some homework on your area. I know GA is going bonkers right now. Great feedback. TY

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    8y

    Hey @Anthony Dooley, you can do both- keep the house AND rent it out AND pull out the profits. That's exactly how I built my portfolio. In the interest of not clogging this thread with a long post, feel free to PM me, I'd be happy to walk you through the process. Good luck!

  • Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    8y

    @Michael Y. Do you ever plan on moving back to Vegas? That might be something to think about as well. Does your HOA have rental restrictions? After expenses, will it cashflow? Does the $1040 include insurance and taxes?

    Can you roll the equity into something better in your new location?

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