“Should we sell fast my second home in Houston, Texas, or hold onto it and use it as rental property?” This is actually a common question that We Buy Fast Houston Houses has been asked on several occasions. Deciding whether to rent out a property or flip it is not easy. To be quite honest, it’s never been. You have to do your due diligence by taking into account all the factors involved, before making a final decision.
By the way, the decision about selling my home fast in Houston, Texas, or renting it out, should be made before you make the purchase. Knowing this, here’s how you come to a decision on what to do:
Capital gains vs. sales price
The sales price of my house in Houston, Texas, will hinge on a number of factors. One of those factors is the market conditions. What’s happening in the current market? Is it a buyer’s market or a seller’s market.If you made the investment in a buyer’s market, you’ll have to wait for the supply to go down before selling. Selling in a buyer’s market is a colossal mistake considering the supply surpasses the demand. You don’t need to be good in economics to understand why that is not good for you, as a seller.
Renting out is an option that’s usually explored by investors who aren’t happy with the current value of my house in Houston, Texas. By renting it out, you’ll be earning passive income as you wait for properties in the area to appreciate in value. We Buy Fast Houston Houses would advise you to buy and hold real estate if you wish to benefit from capital gains later on.
The cost of renting my house in Houston, Texas
It would to dumb not to think about the rental expenses when you’re trying to figure out what’s the best real estate investment strategy to work with. The holding costs associated with renting out my house in Houston, Texas, include:
- The property taxes: every year, you’ll be required to pay a percentage of my home’s value as property tax.
- Insurance premiums: As a property owner, you have to protect yourself against certain risks. For example, a tenant or someone else could be injured on your property. The insurance premiums also cover damages made to the property by your tenants.
- HOA fees: does the house or condo belong to an association? If the answer is ‘yes,’ that’s more bad news for you. Every month, you’ll hear a knock at your door, and that will be the association’s representative asking for an HOA fee.
- Repair and maintenance: the only way you can shield my home from depreciating is through regular maintenance. Make sure you fix anything that’s broken and update appliances that need updating.
Focus on future prospects
Think about the future before you make a decision. Where will you want to be in the next 5, 10, or 20 years? What does the forecast say? Are the properties going to appreciate or depreciate? Are investors opening new businesses in the area? Even though you cannot 100% be sure what will happen in future, you can use the current market trends to make an informed decision. And if by any chance you need the help of a professional, you can always call We Buy Fast Houston Houses.