When to sell a rental home
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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