Should I Sell or Rent the Home I Own in Temecula CA

Should I Sell or Rent the Home I Own in Temecula CA?

There are several factors to consider when trying to decide why to sell the home you own, or rent keep it and rent it out.  We'll give you the usual ones here.  As always, please remember to do your own investigation regarding issues or factors that are important to you, whether renting or selling a home anywhere.

•Reasons to Keep and Rent Out a Home

Let's imagine you've owned your Temecula home for 3 years.  Now, you are moving out of town for a new job.  So you have paid your mortgage over these last 3 years.

Now imagine years 4 through 30 of the loan being paid by the tenant paying rental payments to you, with - at times - you having to throw a couple hundred or a few thousand dollars at repairs and maintenance.  Is it a pain?  Sometimes, though less if you use a property manager to handle the hassles.  But consider this: the tenant's rent payments will go to paying off the bulk of a couple-hundred thousand dollar investment that has your name as the owner.  Once you've retired, that cash flow from rents or the profit from the value of the home by that time in the market (less whatever is left as owing on the loan) is your profit for taking on some hassle.  The payoff can be significant, again, thousands, tens of thousands, and possibly more, of dollars.

Owning the home as an investment, paying the monthly payments with the tenant's rent payment going to pay off that loan, at some point when the loan is paid off.  At that point, you are either saving yourself a housing payment if you move back into it, or you are renting the home out to someone else, whose rent payments to you are cash in your pocket.  Note that this strategy requires that you make sure the note gets paid down/off.  If you continually refinance the home and/or take cash out, it makes it less likely you'll achieve this goal.

•Reasons to Sell and Not to Rent Out a Home

If you are moving from the home and not directly into a new job, and you feel uncertain whether you could come up with "a couple hundred dollars or even more for repairs occasionally or the extra amount needed to pay for the home monthly if rent doesn't cover all expenses," then this is a consideration as to why not to rent out the home.  Again, factor in whether you want to take on an investment as described in the prior paragraph.  If the hassle in time and having to pay for repairs and maintenance are too much for you compared to the possible up-side of long-term return, you may feel you need to sell.

Whatever you think the answer for you personally is, it can't hurt to have a free consultation with an experienced real estate professional who also owns and rents out properties of his own and for many other owners, to help you figure out what is the best choice for you.  Feel free to call Frank for that consultation: 951-326-7330.  Or see SandtoSeaProperties.com.