sell

Should You Sell Your House Or Rent It Out

two of the best strategies for getting

started with real estate number one the

obviously the FHA moving you know moving

to a house by house three

three-and-a-half percent down especially

then that alone doesn't mean it's gonna

be a good deal right but well you did

you bought a fixer-upper of something

that needed to be a total remodel and

you did the work yourself I do okay so

yeah like you you you sweat equity you

got in there but then the second thing

you did which was cool is that you turn

that first property into a rental that's

probably the number one way that I hear

people get into real estate is yeah I

just turn my house into a rental

property do you advise that for other

people today when you're talking people

your clients or or whoever they yeah

turn your old of property in right I

mean because they you're the Nagant have

kind of like you'd either have them sell

right because you are an agent you get

money no absolutely it is a so

investment real estate is a big part of

my business yeah

for me building millionaires building

investors so it is if the property makes

sense which most of them do especially

younger clients of mine they're living

in houses that would make good sense as

a rental so that is my absolute first

and foremost advice yeah you know and

even looking at tax strategies you still

have three years to make a decision

moving out of your primary yeah with

capital gains are rules so yeah I advise

people to keep their existing home if

they have the ability to yeah annal in

the laws related to qualification and

income even for new landlords that's

eased up over the last couple years so

it makes that transition easier as far

as qualifying for both mortgages it

makes it a much more leniency there now

too compared to a few years ago and if

people are wondering what that means

about the capital gains thing I'll

explain that real quick and check me if

I'm wrong here basically the government

says hey if you live in a property two

of the last five years you don't have to

pay capital gains when you sell and

again we're not CPAs but the gist is

you're not paying cap gains if you live

in the house to the last five years it

doesn't win the immediate two previous

years it just means two of the last five

correct so I actually did the same thing

recently I lived in a house for several

years sold it

I may like I think was an eighty five

thousand dollars in profit well I

shouldn't say I sold it but there was

two years in between when I when I

stopped living there and when I sold it

and made $85,000 I still got the claim

that two year thing and I lived in there

two of the last five it just wasn't the

immediate recent - correct yes that's

why you have a couple years it aside so

and a lot of people ask me I question

should

rent my house or should I sell it and

it's it's a hard I mean I like to say

yeah you should just rent it out because

it you get you in the real estate but if

you're in rented out and lose a hundred

grand at taxes because you know maybe

then you should have sold it in Duncan

Runnels what you usually tell people

when they say should I rent it or sell

yeah ninety-five percent of the answer

is keep it as a rental yep you know if

they have the fortitude and the

personality type that it's gonna work

well and again it's a house that makes

sense which in our market most houses

will rent for what your mortgage is

especially if you get the mortgage a few

years ago mmm and even if it's running

skinny if you only owe one two three

properties you can take on a little bit

tighter deals as opposed to say owning

10 20 30 so I think you could be a

little more risk tolerant in the

beginning on deals that might be a

little tighter

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