When it comes to an investment property, there are typically a pair of options to choose from: rent or sell. Selling is generally considered a short term solution while renting is a long term investor strategy. Each option has its pros and cons, though one may be a wiser option for you than the other.
Let’s say you’re thinking about an investment in a market where supply is low. In this case, it may be a better idea to sell. What can the property bring to the table following its renovation? Use comps to see how fix and flips are performing. You may also wish to consider a short term investment if you’d rather not deal with the responsibilities associated with it (i.e.: being a landlord or property manager). As time goes by, maintenance costs will creep up.
If residual income sounds appealing, long term may be the way to go. If you’re almost certain the property will continue to appreciate, it makes sense to rent as a viable strategy as it will result in a monthly income. If and when the time comes to sell, the property value should have increased significantly over time.
This update is by hard money lending 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 hard money lenders FL or hard money loans Miami, please call 954-816-0388 or fill out our application.