Feel Forced to Rent Your House Out?
via travisbuyshomes.com
Do you want to sell your house but feel like the market conditions are forcing you to rent it out? There is another option no one has told you about yet!
Renting your house is a very short term “solution” to a long term problem. First, let’s consider your goals with selling your house:
-Get the mortgage paid off
-Get the equity out of the house (if there is any)
Unless you purchased the house as anything other than your homestead, these are essentially your only two goals when you need to sell a house and move on.
Next, let’s consider what renting the house out accomplishes:
-Get the monthly mortgage payment covered
Renting your house out does not pay off your mortgage, nor does it leave you with an exit strategy to accomplish either of the goals for selling your house! Furthermore, it leaves you responsible for the maintenance and repairs on the property while a tenant (not a homeowner!) lives there. And what happens when the property comes up vacant in 12 months?
Thankfully, there is a way you could accomplish the same benefit of renting (get that mortgage payment covered), while eliminating the maintenance, repairs, and vacancy cost. That solution also leaves you with an exit strategy to get your mortgage paid off and get the equity back out!
If you owner finance the house, then you can meet both the long terms goals of selling the house, and the short term goal of renting it!
When you owner finance the house, the buyer will owe you a mortgage of your sale price following closing. They will then begin making monthly mortgage payments to you, which will be used to pay your underlying mortgage each month, as well as the taxes and insurance. We then work to get that buyer refinanced as quickly as possible, which is the long term exit strategy for getting the mortgage paid off and receiving the equity. In the meantime, there is a homeowner who has pride of ownership living in the house, not a tenant! This means that you will not be responsible for maintenance and repairs, nor will there be any vacancy to worry about!
So – when making a tough decision regarding selling your house, consider what your goals are, and how each option works you closer to achieving those goals.
th
Do you want to sell your house but feel like the market conditions are forcing you to rent it out? There is another option no one has told you about yet!
Renting your house is a very short term “solution” to a long term problem. First, let’s consider your goals with selling your house:
-Get the mortgage paid off
-Get the equity out of the house (if there is any)
Unless you purchased the house as anything other than your homestead, these are essentially your only two goals when you need to sell a house and move on.
Next, let’s consider what renting the house out accomplishes:
-Get the monthly mortgage payment covered
Renting your house out does not pay off your mortgage, nor does it leave you with an exit strategy to accomplish either of the goals for selling your house! Furthermore, it leaves you responsible for the maintenance and repairs on the property while a tenant (not a homeowner!) lives there. And what happens when the property comes up vacant in 12 months?
Thankfully, there is a way you could accomplish the same benefit of renting (get that mortgage payment covered), while eliminating the maintenance, repairs, and vacancy cost. That solution also leaves you with an exit strategy to get your mortgage paid off and get the equity back out!
If you owner finance the house, then you can meet both the long terms goals of selling the house, and the short term goal of renting it!
When you owner finance the house, the buyer will owe you a mortgage of your sale price following closing. They will then begin making monthly mortgage payments to you, which will be used to pay your underlying mortgage each month, as well as the taxes and insurance. We then work to get that buyer refinanced as quickly as possible, which is the long term exit strategy for getting the mortgage paid off and receiving the equity. In the meantime, there is a homeowner who has pride of ownership living in the house, not a tenant! This means that you will not be responsible for maintenance and repairs, nor will there be any vacancy to worry about!
So – when making a tough decision regarding selling your house, consider what your goals are, and how each option works you closer to achieving those goals.
th
Comments (0)
Print
Send
del.icio.us
Linking Blogs
