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Cody Smart, who has been a Visio Account Executive for nearly two years, strives to be a trusted advisor for his clients. With a vast understanding of the housing market, particularly in Texas and the greater Washington D.C. area, reinforced with a finance degree, an MBA, and PHD coursework in public policy, Cody is able to guide his clients along the right investment path for them. Here is what Cody advises you consider when deciding to rent out a property or sell it:
Do you want to obtain quick cash or to build wealth?
If you need the hard money-- and quick-- then, yes sell the home. However, if you are in the investing business for the long-run and building long-term wealth is your goal, renting out the property is the way to go. As long as your rental income covers your expenses (including any state and federal taxes), you're good to go. Your property's value and rental payments should appreciate over time to keep pace with the general rise in prices across the economy.
Remember that great recession in 2008?
Because of that recession, many people are skeptical of buying houses. But everyone needs a place to live, right? So if a crash happens, then people who aren't able to own homes will need to rent, and you're there waiting for them. Additionally, renting is less of a commitment and a more viable option for a number of people.
What does the local market look like?
Depending on your local market, renting your property could have a greater ROI than a flip. For instance, in a growing market, you could be losing out on potential money by flipping. Essentially, you should always consider the long-term benefits of the market.
Interested in working on your rental property portfolio growth? Contact us today.
Andy Nguyen was born and raised in Houston, Texas. As a 5th-year senior at the University of Texas at Austin, Andy studies Economics and Finance and hopes to pursue a career in consulting. As a consultant, Andy hopes to bring strategic impact and deliver with results backed with vast, insightful data. After a successful career, Andy aspires to open his own restaurant and serve delicious, beautifully crafted Vietnamese dishes.
Dheeraj Nadella is a junior at the University of Texas at Austin. He studies Mechanical Engineering and Business and hopes to pursue a career in engineering. As an engineer, Dheeraj aims to learn the technicalities of a business from an engineering standpoint in order to one day pursue a career in entrepreneurship and run his own business. After a successful career, Dheeraj aspires to travel around the world and pursue non-profit opportunities.
Topics: Real Estate Investing