Should I Sell My Loganville, GA house or Keep It As A Rental?

By
Real Estate Agent with Rich Life Real Estate Team GA#242237

Should I Sell My Loganville, GA House or Keep It As a Rental?

Recently I had a friend who bought a 4 bedroom 2.5 bath home back at the end of 2011 for $42,250.  He has done considerable work to the home, and even the foreclosures that were sold at the bottom of the market brought $58,000 - $67,000.  The home rents out for about $950, but there have been three tenants in two years, and the rental market in Loganville  has been soft indeed.  There is much rental competition and rental prices have not really gone up.  We are approaching Thanksgiving and Christmas soon, and so the rental market is at its seasonal low point. To rent the property out, some carpet would need to be changed, certainly some painting would need to be done, and the property will rent for $100 per month less than it would normally bring.  To wait to rent it at a higher price means losing a month or two worth of rent, which defeats the purpose of getting the higher price. 

In the mean time recent sales in the neighborhood are in the $98,000, 121,000 - $125,000 range.  That price range of home moves very quickly in today's market, and my client would potentially stand to make a handsome profit.  He could 1031 exchange into other assets, but to do so locally would negate much of his profit as the market has risen considerably.  If he were to exchange into a close market like Birmingham, Alabama he could probably nearly double his income and own two houses instead of one.  That market hasn't recovered yet, but it also isn't as strong of a market.  To sell this home in the $120,000's the seller will need to make some upgrades to make the house stand out, but then he also will lose the cash flow.  Certainly, it will be a long time before you can buy a 4/2.5 house built in the 1990's for $42,500, but what if the home would be worth $150,000 in three to five years?

Both of these scenarios have pro's and con's, and in either case my client has made a great investment, and I'm thankful to be able to be there to help him with acquisition and exit strategies.  Both situations have different tax implications, and much depends upon a market for which none of us have  a crystal ball.  What is the answer to my clients question, "Should I Sell My Loganville, GA House, or Keep It As a Rental?"

 

If you are looking to buy an investment property, or wonder whether you should rent or sell your home or investment property, please feel free to call 404-718-9126 for a free consultation.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
Georgia Gwinnett County Loganville
Groups:
Keller Williams 'Rainers
Investors
Posts to Localism
Inspiration Station
Tags:
rent or sell my home
should i rent or sell home
should i sell my rental property
does it make sense to sell my house

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
689,647
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Jared, this can be a difficult decision for most. I usually advise them to reconnect with their initial investment strategy and let that guide them.

Oct 30, 2013 01:42 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
50,010

Jared Garfield

Invest With The Best For The Highest Returns!
I Would Like To Invest!
*
*
*
*
Spam prevention