Center Street Lending shares a presentation discussing questions you should ask when considering renting vs selling properties.

1. Essential Questions to Ask
When Considering Selling vs.
Renting

2. Poker buddies looking to make a
quick buck, young families looking
for a profit option, retirees seeking a
project, are all finding their way into
the fix and flip market. By making
the repairs, putting the homes back
on the market, the goal of turning a
nice profit in just a few months is
attractive for pretty much everyone.

3. There are many addictive TV shows
you may have seen highlighting the
process. But when was the last time
you saw a TV show about a couple
buying a house, fixing it up and
renting it out? Maybe never.

4. However, the rental route is a viable
option for making money in the real
estate market. Many factors can be
involved in determining whether fix
and sell or fix and rent may be a
better strategy for you.

5. Let’s take a look. Remember, you can
find more resources about fix and
flip on CenterStreetLending.com.

6. What kind of
an investor are
you?

7. It’s essential to ask yourself some
introspective questions to see how
you may function as the owner of a
rental property and why that
investment may benefit you.

8. Are you are risk-taker or are you
more conservative?

9. Do you have a long-term vision that
will build a nest egg for your
retirement?

10. Or are you looking to make a quick
buck and move on to the next thing?

11. Fix and flip is designed to give you a
quick profit. It also keeps
opportunities flexible, if you decide
to move onto flipping another house
or an entirely new business route.

12. Of course, fix and flip also runs a
great risk if you run into higher
rehab costs than you expected or hit
a downturn in the housing market
that cuts into your quick profit or
worse, leaves you with a loss.

13. Historically, home prices have
increased an average of 3 percent per
year, so as you hold the property,
your resale value is going higher.

14. Rent and hold will not net you a quick
return on investment, but it could
lead to a long-term profit that’s even
greater. First, you have the monthly
income generated by the renters.
Second, your house is building equity
the longer you hold it. So these are
some factors to consider.

15. Are you
prepared to be
a landlord?

16. Rental properties also requires
responsibilities. There are
maintenance costs involved in
renting a home, but they should be
negligible in the first years if you
complete an efficient rehab.

17. It’s the renters who will fill your
property that will require most of
your work. Do you have the patience
and people skills to deal with finding
the right renters and handling their
needs over a long period?

18. You also can turn the home over to a
property manager, but that eats into
your profit.

19. Find more details on fix and flipping
on Center Street Lending. Follow us
on Twitter.