With the market rapidly changing, many homeowners are considering renting out their
properties instead of selling them. There are pros and cons to either decision. However, here are 3 great reasons why you might choose to rent out your home instead of selling.
1. Cash Flow
You may have a long-term wealth-building strategy in mind. Your house can serve as an
excellent tool to accelerate your wealth if you turn it into an investment property. You should
definitely consider the market rents in your area in comparison to your monthly mortgage
payment. Make sure you connect with a great property manager or investment advisor who can help you analyze how much your property will rent for and some expenses that come along with that. Rents in Clarksville, TN have been on the rise. Be sure to connect with a team that has their thumb on the pulse of the market so you do not leave any money on the table. If done correctly, your house can produce “mailbox money” and be a relatively passive investment!
2. Appreciation
Historically, real estate has appreciated 3% per year on average across the United States.
However, depending on the market you are in, this number can vary greatly! For example,
single-family homes in Clarksville, TN have appreciated 20% or more year-over-year in 2022! In other words, the longer you hold onto your property, the more it could be worth down the road!
3. Tax Benefits
The government is very friendly to real estate investors! They want to encourage you to invest. You may be able to receive tax benefits for owning a rental property. Consult with your tax advisor and see if you can write off your interest, maintenance, and repairs on your rental property! If you do not yet have a good, local tax advisor, our team can point you in the right direction!
Educate, educate, educate! There are many benefits to owning rental property! While this article highlights some of the good things, you should also educate yourself on some potential downsides. Are you interested in exploring your options? Come in for a free consultation or give us a call and let’s chat!
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