Owning a home is one the biggest investments you will ever make. Owning a home in Alachua is one of the best
investments you will ever make. There may come a point when
you want to maximize that investment.
So should you sell the house, or turn it into a rental property? There are a few important factors to consider when deciding which choice to make. Is your goal to sell off the place for immediate funds, or turn it into an ongoing source of cash flow?
Do You Want to be a Landlord?
This is the first and most important thing you need to ask yourself.
Alachua is a rapidly growing market, with many opportunities. But owning a rental property can be hard work. Even if you secure the services of a property manager, there are ongoing costs and concerns you will need to address.
There is no right or wrong answer to this question, it depends entirely on your personality and your disposition. Some people love owning a rental property and start to add more rentals. Other people simply don’t want the hassle of dealing with tenants.
What sounds more like you?
What will Generate Maximum Cash Flow?
This can be a dizzying and complicated question. As a quick rule of thumb, a landlord can expect to pay out half of each month's rent as expenses. Taxes, insurance, upkeep, management, and more make up what is called the “50% rule.”
Be warned this “rule” does not include financing costs (if you still have a mortgage) nor does it include the possibility of vacancies, which means you will still have expenses even if you aren’t collecting any rent that month.
Depending on your particular situation, you may have a very narrow profit margin for renting. Study the Alachua market, ask questions of local real estate agents, crunch the numbers, and figure out the smartest way to make your property work for you.
Is My Money Better Invested Elsewhere?
For a homeowner looking to either rent or sell, the bottom line is almost always return on investment.
If you decide to rent your home, you are locking down that equity into the property. That money could be invested elsewhere, into stocks, mutual funds or even other rental properties.
So you have to be sure – is the return on investment worth the risk and hassle?
We are Here to Help
These are not easy questions, and you may require a little additional information to make an informed decision.
Regardless of if you decide to rent or sell, the agents at Allison Ables Real Estate and Property Management can help you find the information you need to make the smart choice.
With years of local experience in Alachua, Gainesville, and the surrounding areas, Allison Ables Real Estate and Property Management has insight that is hard to find anywhere else. Call 352-371-1828
, or send us an email.