Vantage Property Management
Better Qualified Tenants.
Less Time on the Market.
Higher Comparable Rents.
On several occasions throughout the years, homeowners, who were in the process of moving from their current home, have come to me with questions as to weather to sell the current home, or to keep it as a rental investment property.
The quick, simple answer is "to sell it", Get rid of all the headaches and call it a day. That may be the quick answer, but is it really the best answer.
Recently a home which we have been managing for an owner for over eighteen years was coming up for re-rental. In our process of preparing a fresh rental market analysis for the property owner, he mentioned the this would probably be the last time that he would be offering the home for rent.
Naturally, I felt bad about the possibility of losing a client for whom we had been providing property management services for over eighteen years, until the owner explained the reasoning for his decision.
The owner explained that his oldest son will be graduating from high school next year and will then continue on with four years of college. The owner plans to use the proceeds from the sale of the investment property to cover the costs of his son's college.
What a great feeling to know that this particular owner, along with some minor help on our part, would able to put his boy through four years of college and come out debt free (Actually, in this case, the owner will be able to put several of his children through college, as he did rather well with this particular rental investment over the long haul).
According to recent College Board data, the average cost (tuition and fees) to attend a private, four-year college is $35,830 a year. Meanwhile, the average cost for public, four-year college, as an in-state student runs about $10,230 per academic year. Whereas, attending an out of state college will run some where in the $26,000.00 annual range.
If you are like most of us, the thought of shouldering the expense of putting one or more children through four years of college is almost an insurmountable financial task.
Of course some will point out that "I don't have any children, or my children aren't planning to attend college". Then you poor souls will just have to "make due" with adding an additional $300,000.00, $400,000.00, or $500,00.00 on top of what other retirement income which may be coming your way.
Sure, by keeping the house as an investment property over the long haul, you are going to incur the expense for the replacement of several waters, probably one new roof and the occasional interior painting and carpet replacement.
However, weather you're planing for a child's college tuition, or just looking for really comfortable retirement nest egg, unless you are a genius at figuring out the stock market, there is probably no better "long haul" investment than investing in the home that you once lived in.
We’re moving. Do we sell the old house,
or keep it as an investment?
Vantage Property Management
410.729.2770
1120 Benfield Blvd.
Millersville, MD 21108