Renting Vs. Selling
I have a stupid question. I am new to investing and have a good understanding of what is needed to buy and sell properties. My question is how do you know what properties you acquire to sell or rent? Is it a preference or is it something else? For example you buy a house for 100k and it is appraised for 150k, do you try and sell for 140k to move it fast or rent? Is there a formula you use? It sounds stupid but I would just like to know how everybody that has experience in this business goes about this situation. Thanks
FDI,
Thanks for the insight. I appreciate you taking time for my dumb question. It does let me know a little more. I just wanted to hear from some investors who look at houses and immediately know if they are going to resale quick or rent it. Once again it clears things up for me and thank you.
There is no formula, it is a personal preference of whether you want to hassles of being a lanlord. It is important to always have an exit strategy BEFORE you buy the property. Buying to resell creates income today while renting is like a retirement plan. The cashflow is not the reason to rent, it is the gain in equity.