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I've had people wondering whether they should try to rent out their home or just sell it and buy a new one. This is a great question, and it kind of depends on how badly you need that equity to buy another home.
Some of my clients want to buy bigger homes, but don't have the money to do so. If you pull out the equity in your home during a sale, you can use that as a down payment on your next home. In this situation it wouldn't make a lot of sense to rent out the property if you needed the equity. I also see a lot of baby boomers wanting to downsize, and this would also be a wise time to sell your home instead of renting it out.
So, what would be a good situation for you to rent out your home? If you're looking to build passive income and you have a sizable amount of money to put down on another property, then I suggest that you make an investment in a rental home. This is a great way to create passive income, and it will allow you to expand your portfolio.
Just be sure that you've found another property to move into before you begin renting your home. These situations can get tricky, but usually making a purchase contingent upon you finding a home will do the trick.
If you need assistance with this process, or if you'd like to talk about renting out your home for passive income, please don't hesitate to contact me!
