Having Trouble Selling Your Home? Maybe You Should Rent it Out

Rent out homes that can't sell. Cache County currently has 800 homes for sale. Less than 50 homes have sold each month for the last two months. The chances Logan homes have of selling, unless they are priced at a severe discount are pretty low right now.

Many homeowners don’t realize that they have options besides selling. You don’t have to settle for the low prices homes are going for right now.

Your best interest might actually be to rent your home out. Owning real estate is a great way to generate wealth, and having a rental property or two can be a great way to supplement a retirement income.

Real estate owners have many reasons to move. Some of the time its out of necessity, other times its simply to move into a more desireable home. In the current economy, and with mortgage interest rates as low as they are, the best long term financial decision is probably to rent a house out rather than sell it at a steep discount.

Rental rates generally exceed mortgage payments on loans with today’s low interest rates, especially if you have equity in your home. By renting out your hard to sell house, not only can you continue to build equity as your house gets paid down over time, but you might also be able to generate extra cash flow when rents exceed payments.

Plus, as the years pass by, your property value, and your rental income will increase with inflation.  Your fixed mortgage will stay the same, and eventually, it will be paid off. By owning rental real estate the renter pays the expenses for a long term asset.

Home loans are for primary residences are better than for properties purchased specifically as investment properties. By living in a home, and then converting it into a rental property mortgage terms are more favorable.

One obstacle many potential landlords face is that they can’t qualify for two mortgages. Even though the rental revenue exceeds the mortgage payments, lenders require substantial reserves (usually six months worth of payments) for rental property. They also require that income falls within their Debt to Income guidelines.

Another roadblock many people have with owning a rental property is that they just don’t want to be landlords.  They don’t want to get the phone calls in the middle of the night from tenants who have leaky toilets.

This is easily overcome by hiring a property management company. Hiring Logan property management companies allows real estate ownership without ever having to deal with tenants or home maintenane issues.

It’s a tough time to sell Logan real estate right now. If you can, you might be better off by finding a renter.  Talk to a mortgage lender or Logan real estate agent to see if renting your home is a realistic option for your situation.

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