08/21/2023
Renting a Home
✅Pros:
•Steady Income: Rental properties can provide a consistent stream of income, which can help cover your mortgage and generate additional cash flow.
•Flexibility: Renting allows you to maintain flexibility in case you want or need to move, without the hassle of having to sell your property.
•Property Appreciation: The property may increase in value, potentially benefiting you when you decide to sell it in the future.
❌Cons:
•Maintenance and Repairs: You are responsible for maintaining and repairing the property, which can be costly and time-consuming.
•Tenant Issues: Dealing with tenant problems, such as late payments, property damage, or eviction proceedings, can be stressful and require legal action in some cases.
•Market Risk: The rental market can fluctuate, affecting your rental income. In a downturn, you may struggle to find tenants or have to lower your rental rates.
Selling a Home
✅Pros:
•Lump Sum Payment: Selling your home can provide a lump sum of money that you can use for other investments or expenses.
•No Tenant Hassles: You don't have to deal with the responsibilities and challenges of being a landlord, such as tenant turnover and property maintenance.
•Capital Gains Exclusion: You may be eligible for a capital gains tax exclusion when selling your primary residence if you meet certain criteria, allowing you to keep more of the profit.
❌Cons:
•Transaction Costs: Selling a home involves transaction costs such as real estate agent commissions, closing costs, and potential capital gains taxes.
•Market Timing Risk: The timing of the sale can significantly impact the price you receive. Selling in a down market may result in a lower sale price.
•Limited Real Estate Exposure: By selling, you lose exposure to potential long-term real estate market appreciation.
👉🏻 The best way to know for sure what’s right for you is to sit down with an agent 👩🏼💼 who can run the numbers 🔢 for both scenarios. Let me know if you’re ready to take that step 🦶🏻
We are never too busy to answer you or your referrals’ real estate questions! ❤️
Equity Real Estate - Advisors
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📱 801.753.8550 | 👩🏼💻www.AceRealtyGroupLLC.com