The Pros and Cons of Renting Out Your Home
Should you sell your primary residence or turn it into a rental property?
“Should I sell my home now, or should I keep it as a rental?” That's a great question. Here are four things that you need to look at before deciding:
1. Mortgage. If you have a mortgage on your home, they'll dictate whether that mortgage will allow you to actually turn it into a rental. It's very important to give your lender a call to find out. You may have to refinance and take that mortgage out.
2. Tax implications. These can be positive, as it relates to running a small business by renting your home. You want to talk to your tax professional to see how depreciation could be a big benefit to you.
3. Rental income. You can use that rental income to pay your mortgage. With somebody paying that principal, you're building equity in your home.
4. Property management. This can be a bit of a negative. Whenever you start thinking about having a rental, you need to think about the time it'll take you to take care of it or the cost. You can hire a professional property manager, or you can manage it yourself.
If you really want to do a personalized analysis to determine whether you should lease it or rent it, call (317) 441-7887, visit my website, or send me an email. I’m always happy to help.
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