Home Selling in Cornelius>Question Details

Pauline, Both Buyer and Seller in Charlotte, NC

Renting a home vs. selling

Asked by Pauline, Charlotte, NC Fri Dec 21, 2007

We own a home in the Lake Norman area and a considering possibly renting it. What are the benefits of renting over selling?

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7
Big question is, if you decide to rent it out, will it cash flow? Meaning will it sustain itself, pay mortgage and other costs with just the rent, no cash in from you.

If it will, I'd strongly consider renting (oh, there are headaches) it out, and then potentially selling in a stronger market.
Web Reference: http://www.toddnorsted.com
2 votes Thank Flag Link Fri Dec 21, 2007
I agree with these guys but even if it just breaks even, you'll still be reaping the tax benefits as well as the appreciation which, even in this poor market, the Lake Norman area is still getting.
1 vote Thank Flag Link Fri Dec 21, 2007
I agree with Todd. Cash flow is king. But make sure the cash flow is worth the risk. If you are only just covering the mortgage payment, sell. With the costs of upkeep and occassional vacancy, you need to have an actual profit. You could also refinance the mortgage and try for a lower payment prior to renting.
Good luck!
Web Reference: http://www.ednailor.com
1 vote Thank Flag Link Fri Dec 21, 2007
It depends on your short / long term goals. You receive annual tax benefits on your investment property as a rental confer with your CPA
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Mar 9, 2011
You have gotten good answers. Make sure it cash flows,consider the wear and tear and see a lawyer to understand eviction. I would also get a comparative mkting analysis from an agent that is familiar with Lake Norman to help judge renting vs selling.
0 votes Thank Flag Link Wed Mar 9, 2011
You have gotten good answers.Make sure it cash flows,consider the wear and tear and check with a lawyer to understand how you could evict a renter who is not eager to leave.
0 votes Thank Flag Link Wed Mar 9, 2011
I agree with the answers from Todd and Chad. The market should be better a year from now but be careful of the wear and tear on your house and check with a lawer to see how hard it will be io evict the renters if they stop paying.
0 votes Thank Flag Link Sun Mar 6, 2011
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