First questions I ask sellers interested in renting out their home are:
1. How do you feel about being a landlord, getting calls at night because something broke or water is all over the floor?
2. How about spending time showing the home to prospective renters, checking out their credentials, handling late rent payments?
3. How would you handle a non paying tenant, or doing an eviction?
Being a landlord is not just collecting the money at the end of the month, it also entails unforeseen headaches, and legal problems. I know, I have been a landlord for many years, and even when you dot your Is and cross your Ts, things happen.
Talk to a certified public accountant to see what may be best for you financially, then make a decision.
Some people sleep better at night knowing that they have their money in the bank, and no tenant headaches.
Any questions, ask here on the board, or call me, I'm in LA's Westside and just a few minutes away from Valencia.
Realtor, Certified HAFA Specialist