Sell or Rent

[Account Closed]

I have a 3 story 5bd, 4.5ba, 2 car garage home with 4200 sq ft of living space. I’m close to the airport, a park, and short distance from all sporting arenas. 

I’m torn between selling the home ($850000) or renting it ($7000/month - 3 month’s security- 1 yr lease). 

Any suggestions? 

[Matt Marcus]

Quote from @Account Closed:

I have a 3 story 5bd, 4.5ba, 2 car garage home with 4200 sq ft of living space. I’m close to the airport, a park, and short distance from all sporting arenas. 

I’m torn between selling the home ($850000) or renting it ($7000/month - 3 month’s security- 1 yr lease). 

Any suggestions? 

I am just going to shoot you straight. You will not get 7k/ month for a 3 story 5b4.5ba 2 car garage in that area. That is luxury high rise condo / rental territory or a Green Hills/ Forest Hills/ Belle Meade / Oak Hill home and usually those are Million + homes with plenty of amenities. I run rental comps continuously as I run a property Management side of my business and i know that area well-- so likely your home is either undervalued or your rent is over valued. and 3 months security deposit will not fly with most tenants. -- The standard is for 1 month to 1.5 months max in the nashville area -- If this is your personal home talk to your tax advisor but if you've owned it more than 2 years you can sell it without having Long term capital gains, but you would have income tax on it-- so I would think about tax strategies and depreciation/ cost segregations and then getting a heloc on the house and purchasing another and maybe clearing about 100-200$ NOI per bedroom door so maybe 500-1k max profit / month. then you can purchase another property without having the income tax liability, purchase another income producing property ( or two depending on your cash out from the HELOC) and then you're on your way to building some real wealth with some great future tax strategy options to limit future tax liability from the income and properties.