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gabriel palo…, Real Estate Pro in Pompano Beach, FL

When does renting make sense rather than selling?

Asked by gabriel palotas, Pompano Beach, FL Mon Sep 27, 2010

Does loosing money over a short period with hopes of values improving a good reason?
Does loosing a lot right now by selling is an answer that needs not to be asked later?

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Answers

7
Rental is a good way to pay off debt. However, wrong tenants can cause more debt and legal fees. Other than that you have to ask how long will the country be in this recession. if you believe less thaan a year than renting is for you. if you believe it will be at least 2-3 years to climb out of this mess. then selling is the option. Keeping cash til you believe the bottom is here is better than property depreciation and high taxes on your properties. good Luck in yourdecision.
Web Reference: http://nylundrealtors.com
1 vote Thank Flag Link Thu Sep 30, 2010
Renting is always a great idea just make sure you do a background check on your renter as well as a credit check. Its important to know someone respectful and financially stable is going to be living in that home.

If you are thinking about selling its not a bad time either. Homes are getting multiple offers right now and going quickly over asking price. Depends on your needs at the time.

Hope this helps

Lacy Burke
REMAX
310-666-9752
0 votes Thank Flag Link Sat Dec 8, 2012
I think the best path is to rent now sell later. But, make sure you do a background check on your renter. You want to rent to someone who will preserve your home, not trash it.
0 votes Thank Flag Link Sun Aug 19, 2012
Hi Gabriel

Prudent to Rent, take a short term loss, rather than loose a lot possibly do a short sale
and tarnish your credit. In time both Rents and Values go up.

Have a great day.

Ruth

http://ruthandperry.com/
0 votes Thank Flag Link Sun Aug 19, 2012
I recommend before renting check with you CPA to see if there would be tax consequences to renting.
0 votes Thank Flag Link Sun Aug 19, 2012
Dear Gabriel,
I would never counsel a person to lose money...if it can be avoided! On the other hand..if you have an investment that is draining you financially and disaster is on the horizon, then by all means you must consider cutting your losses.
It all depends upon you and your particular circumstances.
Given the Real Estate Market that we have been in for the last several years, there's no telling how long it will take to recover. Some economists say next year...others say ten years!
0 votes Thank Flag Link Sun Jun 17, 2012
Hello,

Being a landlord is not for everyone.
Landlords sometimes, even when they properly screen, get bad tenants that don't pay, constantly pay late or may thrash the property.

But most tenants do pay and on time, most don't thrash the property and there are good property managers if the landlord doesn't want to deal with the day to day.

Values are constantly fluctuating, so the only money that can be made or lost is what is realized at the time of sale, everything else is wishful thinking because you can not lose (or gain) what you never actually have.

I am a big believer that one of the best ways to build wealth is through real estate; but because of the last few years of lightening fast profits and then losses, most newbies do not understand that building wealth through real estate is usually earned by long term holding of property.
The only major regrets that I hear from people that have been in the business a lifetime has been that they wished they didn't sell this or that piece of property. (One example is my husbands father, he sold a home in Torrance CA for $175k back in the late seventies; today- even after the 'losses' of the last few years, that property is worth around three times as much).

There will be situations where someone HAS to sell; but, if you don't HAVE to, renting makes sense.

Trevolyn
0 votes Thank Flag Link Fri Oct 8, 2010
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