Selling vs. Renting: What to Do?
Should you sell your Las Vegas home or rent it out?
If you're someone who already owns a Las Vegas home but may be looking for a change of scenery, one of the questions you may be asking yourself is whether you should sell your current property, or lease it out for cash flow and continue building equity.
Like with most real estate-related dilemmas, there's usually not a right or a wrong answer to the sell versus lease question, and instead it's more about your individual situation. But if you're truly unsure of which direction to take, here are a few key points to remember:
Will my property provide instant cash flow?
Although this component requires sellers to really dive into the numbers, it's probably the most important dynamic in determining whether to lease or sell. First, deduct all of the expenses associated with your home (like the mortgage, property taxes, insurance, maintenance, and so on) to help determine if you'll actually profit off leasing it out. If you're likely to take a loss, selling your home may be the right direction to take.
What's my return on investment if I sell?
Much like the cash flow issue, also determine what your home is likely to sell for should you decide to unload the property. Remember, it's important to be realistic with your valuation here, which will no doubt help you make the best possible decision. If you're not likely to make a big profit or make no profit whatsoever, consider leasing your home until you can net a stronger return. Furthermore, if you're convinced you'll make a hefty return should you decide to sell, why not strike while the iron is hot?
Consider future market conditions.
While it's impossible to truly predict the future of the housing market, projections still exist for a reason. Take a closer look at job growth figures, new construction trends, comparable properties, and other economic factors to gauge how the market might look down the road. If the market looks bleak in the coming months ahead, the time to sell might just be now.
Are you truly ready to be a landlord?
While the idea of having an income property always sounds good on the surface, the ins and outs of being a landlord aren't always so glamorous. Problem tenants can be a major headache in all sorts of ways, and hiring a professional property management company also means extra fees, which will cut down on potential cash flow. So before you decide to lease out your Las Vegas home or condo, it might be time to do some soul searching and decide if you're really cut out for landlording.