Holding as a rental for over a year has huge tax advantages. However, the wrong renter can reduce the value of a property substantially. If your goal is to sell, these two factors have to be balanced carefully to make the right decision.
Also, selling is difficult now, while renting is relatively easy. I would tend to only rent a property I plannned on holding long term, unless the profit from a sale would be so much that the saved taxes could cover any damage a tenant could potentially cause.
I presume since it is a "perfect rental" the rent covers all costs and still provides cash flow. If not, sell it.
Somehow whenever I balance the variables I chose to hold and rent- I like that steady trickle of money coming in while a tenant pays off my property for me. And I seem to get attached to them after I put in a ton of work and know nothing is going to go wrong any time soon. But then again I buy with holding in mind.
In my experience police officers do indeed get fed up with someone crying "wolf" all the time- and simply stop responding or hassle the caller, not the innocent neighbors.
Holding as a rental for over a year has huge tax advantages. However, the wrong renter can reduce the value of a property substantially. If your goal is to sell, these two factors have to be balanced carefully to make the right decision.
Also, selling is difficult now, while renting is relatively easy. I would tend to only rent a property I plannned on holding long term, unless the profit from a sale would be so much that the saved taxes could cover any damage a tenant could potentially cause.
I presume since it is a "perfect rental" the rent covers all costs and still provides cash flow. If not, sell it.
Somehow whenever I balance the variables I chose to hold and rent- I like that steady trickle of money coming in while a tenant pays off my property for me. And I seem to get attached to them after I put in a ton of work and know nothing is going to go wrong any time soon. But then again I buy with holding in mind.
Chris
Depends on you. I personally like the cash in hand, rather than having a few hundred dollars trickle in every month.
Was in a similar situation last year, went for the cash out and it was one of the best things I could ever do.
Buy some, hold some, sell some...
In my experience police officers do indeed get fed up with someone crying "wolf" all the time- and simply stop responding or hassle the caller, not the innocent neighbors.
Hope they never actually need help...
Chris