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Updated about 5 years ago on . Most recent reply
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What to do with this property? Rent to own? Short-term rental?
Happy holidays everyone. My partner and I are currently shopping for a new home to move into and I am looking at what to do with the house we currently live in, I don't think long term hold make sense for this property so it's between selling it and short/medium term rental. The house is located in Calgary, AB in Legacy. Single attached garage roughly 1700sq. The house was purchased 6 years ago for $415 000 with 5% down. The options I am currently considering are:
- Tenant renting:
The house would not cashflow, rents aren't high enough to cover all expenses as a 1 unit rental and basement suite doesn't seem to be a viable option due to the cost of separate entrance and layout of the house.
- Short term rental:
Listing the house on Airbnb and other short term rentals sites or executive rental. This could provide enough cash flow go cover all expenses and hopefully be cash flow positive, it would also provide me exposure to short term rentals. I'm not sure the location would be ideal, it's closed to spruce Meadows in the summer but that's about it and limited transit.
- Rent to own:
This currently seems to be my best option so far, it seems like it would allow me enough income to be cash flow positive while selling the house with less fees? (Aka realtor). This would also give me exposure with something I have been wanting to learn more about.
- Selling it:
I would likely get around $420-430 000 minus fees (realtor, lawyer etc). Any left over equity would go toward acquiring another rental property.
What are your thoughts?