Don’t listen to my colleague, P.T. Vineburgh, on Why You Should Sell Your Home, earn cash flow by renting your home now.
Why should you rent instead of sell? Here are a few key reasons:
1) Be the Bank
As Robert Kiyosaki famously states in his Rich Dad Poor Dad series, “be the bank.” By becoming a landlord, you turn your home from the liability to asset column of your life’s balance sheet by creating monthly cash flow from your tenants, to you, in terms of rental income. Positive monthly cash flow = key to successful buy and hold real estate investing.
2) Build Wealth
Your tenant’s rent pays down the mortgage each month, and if your property values rise (more than likely in the Boston market), you build equity and own an appreciating asset (similar to owning a dividend-paying and appreciating stock portfolio).
3) Hands-Free Investing!
Don’t feel like taking the 3am drippy faucet calls from your tenant(s)? For a nominal fee, you could hire a property management company to oversee all aspects of maintaining your rental unit (even collecting rent checks), allowing you be a hands-free real estate investor!
4) “There’s One for You, Nineteen for Me”
Do what John, Paul, Ringo and George sang about – beat the taxman!
Here are some of the many tax deductions real estate investors enjoy:
Interest – Deductions on interest from mortgage interest payments to home-equity loans used to improve rental properties
Depreciation – By deducting some of the cost of the property over several years after ownership, property owners recoup some of cost of real estate ownership
Repairs – Repainting, reflooring, restaining, a new roof – all of these are repairs that could be deducted the year in which they occur.
These are just some of the many potential tax deductions real estate investors could possibly enjoy. Please consult a certified tax professional for advice on these matters.
There are many issues to consider when determining to sell, or rent your home. At Charlesgate Realty Group, our real estate professionals are determined to develop a solution that fits your needs, and work with you to execute a winning game plan.
