Sell or Rent in Alpharetta ( Georgia ) ?

[Sindhura G.]

Hello everyone,

We recently purchased a single family home and are in a dilemma about selling or renting out our current townhouse which is located in Alpharetta, Georgia. Given the current sellers market, it would be easy to sell the house quickly with a profit. The current age of the house is 13 years.

Would selling be a good choice or would we get more returns long term if we hold onto it and rent it out?

Does Real Estate have the same or better ROI as the stock market?

Sell with a profit now and invest in the Stock Market vs Rent it out and hold for a long term with added expenses of house maintenance as the house ages, unpredictable appreciation, chance of vacancy of the property, property management fees etc.. Which choice is better?

Please provide your inputs. Thank you!

[Richard Balsam]

I've lived in Alpharetta for 22 years now. I have been lease optioning and owner financing since 2004. If you're asking for advice from others than have "been there done that", my advise is to sell. Here's why:

We are in unprecedented times regarding appreciation. You have earned more on appreciation than you ever will renting out at $350 profit/month. Let that sink in. When given the "gift" of appreciation, don't hold out for $4k/year in rental profits. Let me give you examples of why: I own mostly in Gwinnett, with only one in Johns Creek. I've had that house since 2007. Same tenant. He fell on hard times in 2009 ( the last recession) and still owes me a lot of money. I am thinking of terminating his lease when it's done mainly due to the appreciation on the home. His Option on the home has been increasing 3% per year since 2009. He will never be able to buy the home. It has on average, $2-3K in expenses every year. One year, a new subdivision starts- and they clear the land behind the house. Next, Norway rats occupy the roofs of my neighbors attics - and mine. $3,500 later, rats gone ( seal outside roof line of house, remove all insulation and replace in attic). Next year, limb from a large tree near the house drops and goes through the roof ($900) - only because my handyman helped me- not a roof company that wanted $2000. Next year, AC stops working. Next year, siding needed replacement on both sides of the house ($2700), This year- fence needs to be removed and replaced ($2100)  (literally falling down from the earth shifting from drainage of subdivision behind us. See the issue...it's never ending with problems. Think it's just this house? I can go on with examples of dozens of homes I owned over the years. Things happen. The older the home- the more things happen. They don't tell you this in the courses. If I sell this home now- I will reap $100K above the option price ( after the 3% increases annually). If I hold on, I collect a decent amount of rent profit ( beyond what I pay in expenses of course) - but "you can't eat equity" as the saying goes.

What could possibly go wrong with your townhome when renting it out? Probably nothing. Maybe something. Can you hold on if something were to happen? What if your tenant loses his/her job? What if he/she refuses the vaccine and gets fired from their employment? What if they destroy the place? What if the HOA decides to replace the roof, or pave the parking area and impose a separate fee on the owners? What if... you get the idea. Is this worth $350/month - when sitting on a huge tax free windfall of profits? Only you can decide. I know my answer from 17 years in the business.