Sell vs. Rent: What’s the Right Investment Strategy for You?

Published On: August 21st, 2019Last Updated: September 4th, 2019Categories: Investments, REIs

When you’re buying an investment property, you’ll have to decide whether you want it to be a short-term or long-term investment. Should you sell it when you’re done fixing it up, or should you rent it to a tenant who will take care of it and bring you a steady stream of income?

Here’s how to decide.

Sell vs. Rent: What’s the Right Investment Strategy for You?

Selling the house means you get an infusion of cash in profits, which you may need to use for your next investment. However, renting it out can bring in a steady stream of income over time (less repairs and maintenance, of course).

Selling

Selling is a short-term investment. If you’re in a market that has fewer homes available than there are buyers to buy them, selling might be the better choice for you. In many cases, this short-term strategy is the way to go for quicker, one-time profits.

Renting

Renting is a long-term investment. If the property will most likely continue to appreciate over time, and if you’re in a buyer’s market where there are more homes available than buyers to buy them, this might be the strategy for you. Remember, too, that you can choose to sell in the future, when the property has appreciated. The drawbacks to this strategy, though, are that you’ll have maintenance and repair costs over time, and there may be times that the house sits vacant while you look for new tenants.

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