Caption transcript. This text is pulled from YouTube captions and may contain minor wording errors.
[00:00] if you're a property owner you might be wondering self should I sell my property or rent it out and it's a big decision and I'm here to help you weigh the pros and cons so you can make the best choice for your situation now I'm coming at you from Tampa Bay and what I have to say I didn't mean to rhyme what I have to say
[00:17] though will vary based on where you're located so I'm I've been an agent and I've I've also rented out 600 homes I've worked start to finish in the property management space and the sales space let's start with selling first right selling is a great option if you're looking for immediate cash obviously or
[00:34] you want to move on without any strings attached so when you sell your property you're going to get a lump sum of money you can use for anything you can buy your next house another investment you can 1031 if it'ss an investment property and you have a little bit more peace of mind uh you also the uh the ongoing
[00:48] responsibilities of maintaining the property dealing with tenants property managers bad contractors whatever it is as a rental property selling also makes sense of the market strong so right now Tampa Bay is it's in an okay place it's still a sellers Market however there is a little more buy side leaning in
[01:06] certain areas it's kind of quirky so selling could mean you can get top dollar for your property potentially right now now let's not forget something about taxes as well selling means you avoid the extra you avoid the um the potential uh tax tracking that comes with renting you can also eliminate
[01:23] potential risks like Market downturns or tenant related issues where maybe you've had several uh or you've heard or experienced yourself uh tenants who leave properties in bad shape so for a lot of people selling honestly makes the most sense and most people don't want to be landlords most people have no
[01:39] experience and it's a little bit of an unknown to jump into being a landlord especially if you don't have the time for it maybe your work and your family life is demanding so totally get that selling just makes more sense especially when the market is strong now back in 2011 right after the great crash we had
[01:57] a lot of accidental landlords who were forced into renting their property and becoming landlords because they had no other real option they were underwater on their mortgages and that was just the only way they could get through to when really five sevenish years ago when we were kind back to that point where they
[02:13] were no longer underwater but on the flip side if you are underwater right now actually or you're not ready to part with your property just yet or you want the tax benefits or you want passive income renting out can be a pretty powerful wealth building strategy it doesn't work
[02:31] for every property or situation but especially in like Market of Tampa Bay right now with renting you can generate pretty steady monthly cash flow uh granted you've bought the property at least two years ago now the idea of this is that you want the rents to cover not only your mortgage but your taxes your
[02:48] insurance and a little bit of reserves uh for when you need a new roof when you need repairs between tenets vacancy all that stuff so I have a calculator on my website just go over above I think and you can look into just calculating of course you're not going to know what your rent is just you can maybe look at
[03:04] his estimate or something although they're they're usually off but you can see that I have a calculator set up for rental properties has a lot of these fields already pre pre-filled in for you and uh if you have any other questions let me know but anyway back to the rental aspect of things over time your
[03:22] property will also not not only appreciate in value but rents are going to appreciate in value so you have both of those working in your favor you want to build long-term Equity with this and and tenants are going to help you pay down your mortgage and build your Equity along with getting your cash flow so
[03:38] also two times benefit there you're getting a little bit of monthly you should be getting some monthly cash flow but also they're paying down your mortgage for you now of course there are tax advantages to owning a rental property and being a landlord I would talk to your CPA about those I'm not
[03:51] really going to get into it but you can deduct you on the high level you can deduct certain things like pairs certain expenses uh mortgage interest and maybe even depreciation so unless you have a plan to use your money for I would probably also recommend you just keep your property as a rental because let's
[04:10] again if you have something you want to spend that money on or do with or reinvest your inflation is going to take out that savings so most Savvy investors have a plan to do their money they're not just going to just put it in their bank account and let it sit for a few years but if if you don't have an
[04:25] alternative the price of housing tends to to keep with inflation and so keeping it as rental property until you have uh a need for that money is a pretty smart thing to do so what's the best option for you if you want quick cash you have a reason for that cash you want to purchase another property to live in
[04:44] that's a very good reason to sell your property and not rent it out although if you have a down payment already let me Pitch something to you real quick if you have a down payment already for your next house and you keep your current house as a rental property your rent could not only cover the mortgage for
[05:00] your old house but part of your new house as well subsidizing your next primary house so that's a way you can slingshot yourself into a a larger property everyone's situation is different if you purchased your house 10 15 years ago you're going to have a really nice cash flowing property if you
[05:17] purchased your house a year or two ago you may or may not it really depends on where you're at there's a lot of factors at play are you in an HOA are the rules against renting where you're at um if you have further questions about renting or either way reach out to me happy to to
[05:32] help give you some uh some advice and look into your situation and what we can do
