Should you sell your primary residence or turn it into a rental property? 

Should you sell your home or rent your home in today’s market? We want to make sure that you feel confident about your decision on what you want to do with your property equity. At the end of the day, you’re deciding on whether you want to cash out your equity or use it as cash flow.

There are two different strategies when deciding between selling a property or renting it. Selling it means you want to capitalize on today’s market values. We are still seeing peak pricing and home values are still 7 to 8% higher than they were a year ago. Selling is a phenomenal opportunity if you want to transition your lifestyle, cash out at peak values, and take advantage of today’s market.

Some people are thinking about renting their property. This is a great strategy if you are thinking about investments and building wealth. When you rent out a property, you can take that equity position as cash flow that pays back to you in rent every month, and you also get to write off any expenses with that property and depreciate the asset. Real estate is an appreciating asset, but when you turn it into an investment, you can actually depreciate it on your taxes to get phenomenal tax savings. 

Converting your home into a rental could make all of your rental income tax-free.

This decision comes down to what you’re trying to accomplish. Do you want to take advantage of peak pricing in today’s market, cash out, and roll that investment into something that’s going to suit your lifestyle better? Or do you want to build wealth through real estate and take advantage of tax savings?

Reach out to us at (651) 998-9829 and start the conversation. We would be happy to do a strategy session to evaluate what your goals are with real estate and advise you so you can take advantage of today’s market. We look forward to hearing from you.

Written by Shelly Holz on January 9, 2023.