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Should I Sell My House or Rent It? | Sell My House Amarillo

First let me start out by saying that I think everyone should own a rent house.  There are a lot of headaches but the long-term benefits are great.  But what about renting out your personal home?  Is that a good idea?

Here is a classic scenario.  A young couple wants to sell their starter home and move into a bigger house.  Their house is in great condition and they have built up some equity over the years.  They owe $80,000 and the house is worth around $100,000.  They rent their cute little house out  for $1000 per month and that covers their payment of $800 and leaves them $200 left over each month.  Everyone is happy.

Fast forward three years down the road and the picture is not so bright.  They have gone through four tenants in a three year time period.  Two had to be evicted.  Their house has been destroyed multiple times.  They have spent nights and weekends painting and making repairs every time the tenant moved out.  They had to replace a sewer line and an air conditioner condenser.  In other words, they are broke and tired.  So they decide to sell.

The problem is that now their house is no longer worth $100,000.  Now it is worth about $75,000.  So they will have to either completely remodel the house or sell it for a loss.  Neither of which they are excited about doing.

It is usually a terrible decision to make your personal home into a rental.  It is much better to sell it while it is in good condition.  If you have lived there for over two years (one year for fist time home owners) you will not owe any taxes on your gain.  This in and of itself is reason enough to not convert your home to a rental.

If you want to get into the rent business find a house that is best suited for those purposes.  When you have a chance to sell your personal home, take the money and run!

If you have a house that you are thinking of selling give me a call at 806-359-7653 or visit me online at We Buy Amarillo Houses.

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4105 SW 34th St, Amarillo, TX 79109 | 806-359-7653

wade@mitchellpropertygroup.com | emmy@mitchellpropertygroup.com