Updated over 4 years ago on . Most recent reply
Rent out or Sell in sellers market
Hi, We own a house in a prime location with a lot of equity in it right now; almost 60 to 75k, maybe more. We are thinking about selling or renting it out. It is currently a sellers market in our location. Do we sell and get the cash for another house for future investment when the market goes down again? Or do we keep the house as an investment and rent it out?
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Like all good answers..... It depends! many people are facing this question right now. For me it comes down to this... one in the hand is worth 2 in the bush. The "bush" is the idea that you will get a crazy amount of cash for your home and you will be in a great position when the market comes down. We don't know this will happen for certain or when. The "one in the hand" is the FACT you could rent that house out for good money right now! And this does not answer the the question of where you will stay while you wait for the market to come down. Everything is overpriced. people who have a lot of equity in there homes probably have it the best right now. That's partially why we are seeing such a low inventory. I do not think people want to buy in this market unless they can afford to play the game like investors or it coincides with down sizing, retiring, or moving for work. This market is great for some and bad for others. I don't know your financial situation so I can't truly answer your question. But be practical and honest with yourself. Play out the worst case scenario before you invest. Getting too hasty in the beginning of your investing career can be detrimental. Maybe something to consider is taking some of that built up equity out and using that for an investment property.