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Should I sell my house or rent it out?

I am currently holding a house that is worth around $500k. If I rent it out,the rent will nnot cover my morgage and property tax. It will be a negative cash flow for sure. Does this mean I should sell the house with no doubt?
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June 27 2010 - US
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Answers (8)

Not necessarily, you can use the negative cash flow for tax deductions. You can also hold the property until the market turns in your area and sell it then. However, if you need the cash you may consider selling. I would talk to a financial planner and a Realtor to make the decision. 
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July 18 2010
Toystory3,

The question that I always ask my sellers when they ask me that is "If you didn't already own the property, would you buy it as an investment?"  Usually that helps to clarify the first question.  In most cases, the answer is no and that means you should sell.  The answer's not always no, though, so if that's your case, I'd defer the previous answers.

Hope that helps!

Ryan Reynolds
Keller Williams Capital Partners Realty
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July 16 2010
If you sell it, you will end up being a winner. You can do 1031 exchange to avoid tax liabilities if any. But more importantly, you need to remeber that when you sell, you can invest that money in a different market.

It is very unlikely that your property of $500k will generate enough revenue to be making good money for you. If you sell, you can potentially buy 5 to 6 properties for the same price in lets say - Las Vegas where the rental market is also strong. So if you relocate your funds to a strong rental market that has taken a good hit, you will cash flow very well and you will gain significantly higher when that market goes up.
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July 10 2010
Hi Toystory3,
That is a great question,
The answer depends on if you have equity in the home. If you can     rent it out  for more than your payment, keep it and rent it out.
If on the other hand you You are in a declining market then you may   want to sell it and cut your losses now. Will you pay capital gains on the difference? Have you lived in the home 2 out of the last 5 years.
Call a local Realtor, get a referal from a friend and ask a Professional.
Yes, they would love to earn your business, and most Realtors would be happy to build a relationship with you, by answering your questions.
Good Luck in what ever you do!
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July 01 2010
If you can't afford the bleeding of the difference than you should sell it. The market is not getting any better in the next 2-3 years. The below is right if you can hold on to it for 5 years keep it. If not sell it.
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June 29 2010
In a down market, renting is a good idea if you can hold on for 3 to 5 years.
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June 28 2010
Consult with a local Realtor©.

Your options will be discussed and you can decide best plan of action.

Each case is different, let the Realtor© guide you to the best possible solution.

Good Luck!

James Callas - Realtor®
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June 27 2010
If your able to cover the difference than hang on and wait for turna around in market. Otherwise if your able to sell and come out with some money or break even then it may be best.
Renting is not always easy and the market may not turn as quickly as you need.
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June 27 2010
 
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