In a recent comment, L. K. Hurwitz asked this question and now I'm going to answer it briefly.
The truth is that there is no one right or wrong answer to this question because it will vary from one person to another. It depends on your own personal financial situation AND the market.
For the sake of this discussion, I am going to assume that the property is in good condition and it is located in a neighborhood that is likely to continue increasing in property value.
If you do not need the equity from your current home to buy your next home, then you might want to consider keeping your current home as a rental property.
If you do, the next factor to consider is whether potential rental income will cover your monthly costs of ownership, including any vacancy factor. It's a good idea to allow for 30 days vacancy to allow for turnaround and fix-up chores. In other words, will 11 months rent cover 12 months costs of ownership?
Feedback or more information:
- Email: mwoda@remax.net
- Website: www.MargaretWoda.com
Should you sell your home or keep it for a rental property?
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