If you’re buying a new home in 2024, you may be wondering what you should do with your current one. Is it better to sell it or rent it out?
Both can be profitable, but the best choice for you depends on your specific situation. Here are five factors you should consider when making your decision:
Factor 1: The neighborhood.
Is the home located in an area with enough rental demand? Looking at the local job market and population growth can give you a good idea of whether or not it’ll be difficult to find renters. Areas with strong job opportunities and positive population growth tend to be good rental markets.
Factor 2: The condition of the home.
If your home is in good condition, it shouldn’t take much to prep it for rental or sale!
If your home is distressed, it will likely take significant time and money to prepare for renting it out or listing it on the market. It’s important to not paint over issues, but repairs, upgrades, and maintenance costs can really cut into your profits—whether you’re renting it out or selling.
There is one way to avoid putting time and money into a distressed house: sell the house as-is, to a cash buyer. At MarketPro Homebuyers, we buy houses in any condition.
Factor 3: Your skills.
It’s important to be realistic about your skills as a potential landlord. Will you be able to do basic repairs yourself, or will you need to bring in a professional every time? Can you market the home yourself, or will you need to hire a management company? Being a landlord is more profitable when you can do some of the work yourself.
Factor 4: The financials.
Selling your house means a large chunk of income now; renting it out potentially means a steady monthly income, but also more risk. When you run the numbers, don’t only count the mortgage, taxes, and insurance; make sure you account for repairs and potential vacancies between renters. We do expect an increase in rental affordability this year, so you want to make sure renting your home out would still be profitable even if rental prices in your area go down a bit.
Factor 5: Your desire to be a landlord.
Being a landlord can require quite a bit of time and dedication. If you’re not enthusiastic about the process, you may grow tired of managing and maintaining the home. Before you jump in, seriously consider whether or not this is something you can see yourself enjoying.
Bottom line:
If you have the time, skills, and desire to be a landlord, the right house in the right neighborhood can be quite profitable. If any one of these factors isn’t aligned, it may be best to sell.
If you do decide to sell, the fastest way to sell your house is to use a cash buyer. A cash buyer is able to close quickly, due to not needing financing. It’s also much more likely that they will be interested in buying as-is, compared to a traditional buyer. At MarketPro Homebuyers, we buy houses for cash, as-is. We’d love to help you get into your new home in 2024.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; we buy houses with no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
