There are typically two simple yet distinct options to pick from when an investment property is involved: rent or sell. Should you choose to sell, it is usually considered a solution for the short term, whereas renting is a tactic for long-term investors. Both options have advantages and disadvantages and one could be a wiser option for your needs.
Let’s use a scenario where you are considering investing in a market that has a low supply. In this case, a sale may be a safer option. How will the provided advantages once it’s undergone renovation? Using comps to evaluate the performance of fix and flips can help. Whether you choose not to deal with the obligations associated with it (i.e.: becoming a landlord or managing the property), you may want to make a short term investment. Maintenance costs will ramp up as time passes.
Unless the residual revenue sounds enticing, the way to go might be the long-term. When you’re fairly confident the property will continue to grow, renting as a viable option may not be a bad decision as it will lead to a monthly profit. The value of the property would have increased dramatically over time, if and when the time comes to sell.
This update is by hard money lenders Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Broward County hard money lending or hard money lenders Palm Beach, please call 954-816-0388 or fill out our application.