June 12, 2024

42. Should I Rent My House Out or Sell It?

I explore the common question of whether to keep a house as a rental property or sell it. Using a recent case study of a 39-year-old client from Virginia, I break down the detailed financial analysis involved. The client's home, valued at $480,000 with a $431,000 mortgage at a 5.63% interest rate, would result in a monthly deficit of $1,074 if rented out. My comprehensive walkthrough includes considerations of rental income, property management fees, taxes, maintenance, and vacancy rates. To wrap the episode up, I compare maintaining the property as a rental versus investing in the stock market, ultimately guiding the client to sell the property. Listen to this episode if you’re considering renting or selling your next home.

Key Takeaways:

• Is it always a good idea to keep a property as a rental investment when moving to a new home?

• How does a high-interest rate impact the financial viability of renting out a property?

• What are the comprehensive costs and factors to consider when deciding between renting out a property and selling it?

• How do the long-term financial outcomes compare between maintaining a rental property and investing in the stock market?

Key Timestamps:

(00:00) Introduction: Rent or Sell Your House?

(00:36) Case Study: Analyzing the Numbers

(01:18) Financial Breakdown: Costs and Considerations

(04:17) Comparing Investments: Real Estate vs. Stock Market

(08:32) Conclusion: Making the Right Decision

(09:34) Download the Ultimate Military Finance Checklist

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, property management fees, taxes, HOA, insurance, home maintenance costs, vacancy rates, real estate vs stock market, real estate appreciation, stock market return, mortgage interest rates, investment viability, monthly cash flow analysis

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

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