Renting Vs. Owner Financing, Owner Financed Austin Homes, Austin Rent To Own, Rent A Home In Austin,

Being a real estate investor, I meet a lot of individuals along the way who are trying

to decide "is it better to sell or rent my house" of course the answer is, it all depends.

Here are some thoughts to consider.

Can you sell it right now? Most likely the answer is yes. In order to actually sell it, you may need to consider some alternative methods. Such as:

Realtor Sale - You'll have to figure out what your home is worth. You can sometimes get an idea just by asking yourself "how much did my neighbours house sell for"... if it was a quick home sale (and you don't need to sell quick) you probably don't have to estimate that low. But realistically other people in your neighborhood that have had their property on the market may need a quick home sale which will affect how much you can sell yours for. Now you can call a realtor, but if you don't use a reputable realtor, often they will just tell you what you want to hear about sales price just to get the listing. Then once its been on the market and not many people have shown up, they'll start to break the news to you that you need to lower your price. So do your own research, get a general idea, then deduct 6% for realtor commission, 1% to 3% for closing costs and figure you'll pay some buyer closing costs to sell it (buyers are in the drivers seat these days).

Short Sale - Have the bank accept less than what you owe. Will that impact your credit, yes, but we started this discussion by asking is it better to sell or rent a house. So depending on how you sell, there could be some repercussions and a short sale comes with a long list of negatives, but it is a way to get it sold.

Selling with owner financing (http://www.GreatHomesTexas.com) - Which would allow someone to take over your payments. If youre thinking about renting, then selling with owner financing should be a definitely consideration. Why? Well lets discuss some things to consider when renting.

Renting Pros

When you rent it out, you still get all the interest deductions of your income tax. You get to use depreciation to reduce more of your taxable income.

If youre in an area where real estate has not been super over inflated and in an area thats not been experiencing a high rate of foreclosure, then you could experience appreciation and the home could be worth more in the next few years. Eventually the real estate market will come back.

Potentially passive income. We all dream about checks just arriving in our mail box without having to actually go out and work for the money. That is what rentals can do for you. Many people work 20 or 30 years to retire with a small pension. If in that same time period, you just bought 2 or 3 houses and let the tenant pay them off over the next 30 years, you'd end up with 3 houses that sent you money each month and would be worth a lot more than you paid for them. If your mortgage is not too high, you could get a little money each through passive income.

Build up of equity through mortgage pay day. The longer you have a mortgage, the more each of your payments goes towards principal. So as the tenant pays you, more and more of your mortgage gets paid off and it builds up your equity.

Renting Cons:

Tenants, toilets and late night calls. And if youre here in the Austin area, negative cash flow. Thats where monthly its actually costs money to keep a renter in there.

When youre considering renting, go online to craigslist, pull out a newspaper, call the for rent signs in your neighborhood. That will give you a good idea of what you can rent it for. Then youll need to calculate costs to pay a management company (typically 8% to 10% of the monthly rent) and some reserves for repairs. Because when their kid throws a toy into the toilet, or two entire rolls of toilet paper, they will call you and say the toilet just stopped working, I have no idea what happened

Then the costs of repairs after they move out, yuck... and if they left on not such good terms, you could be in for some major damage. You could get lucky and find a tenant who cares about a piece of property they dont own, but its always better to budge for whats coming.

If youre not in a position to cover repairs, negative monthly cash flow and selling through the regular realtor process, then definitely consider going the owner financing route. If youve got a home in the Austin area that you want to sell, need a quick home sale or need cash for houses and have thought about renting it to get a quick solution, but dont want to deal with the cons Ive listed above, consider selling to us with owner financing. Leaving your mortgage in place. Youre payment will get covered 100%, youll have responsibility for repairs and youll end up with a family in the home that has an ownership interest in the home. When their kids draw with crayons on the wall, theyll care. When their teenage parks on the grass, theyll care. It will be their home and theyll have a vested interest in making sure it stays nice. What does a renter have invested in your property? Maybe one months security deposit? To learn more visit http://www.ByeByeTexasHouse.com

You can listen to the advice of your neighbor, your realtor friend and your family members. Just make sure to ask them what their advice is based on. How many properties have they rented? How many have they sold (of their own)? How many of their own have they sold with owner financing? Then call me and we'll brainstorm together on what could be the best solution! http://www.GreatHomesTexas.com

by: Forte Properties Austin, TX

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