Deciding to rent or sell your home in

Jenny Gonzalez

Deciding on whether to sell or rent your home in Corona, CA can be an overwhelming decision, especially with the risk of making the wrong financial move. So, how do you make the right call? Below are some factors to consider.

1. WILL THE PROPERTY CASH FLOW?

When you find yourself in this dilemma situation in Corona, CA or anywhere else, the first thing to consider is the math and ask the right questions. Will the property have positive cash flow? In other words, determine whether the property will produce a monthly profit or loss when it’s rented out and you deduct all the expenses associated with it such as mortgage, taxes, insurance, repairs, and HOA, among others. If it reflects a loss, it’s not worth renting, consider selling.

2. WHAT COULD BE THE RETURN ON INVESTMENT?

Next, determine how much profit you’d get after selling the property. While on this, remember to factor in other sales expenses including around 10% agent fees and closing costs. If your profit is amounting to little or nothing, it’s not worth selling. It would be best to keep the property for a while, as you wait on the market to improve over time.

If selling the house would be profitable, consider your return on investment. For example, if you would make $100,000 in profit by selling the house, while on the

DECIDING TO RENT OR SELL YOUR HOME IN CORONA, CA.

other hand you would only achieve $1000 per year in cash flow, that represents a 1% ROI. It would be wise to take that $100,000 profit and invest it somewhere else with a higher ROI.

3. WHAT DOES THE FUTURE LOOK

LIKE?

Putting on your crystal balls and gazing into the future is another important factor to consider when deciding whether to sell or rent your home in Corona, CA or anywhere else.

What does the next 5, 10, or 15 years look like for the location of your home? Do things look like they’re improving? Is your neighborhood set to decline in value?

Of course, we don’t have crystal balls and can’t know with 100% certainty but analyzing the current trends in your market can help you make a more informed decision. Look at the growth of your city, in this case Corona; is it moving away or towards you? Are new businesses moving into your area? These are some of the factors to help you gauge how the future will look like. If things do not look good, consider selling your home now to avoid difficulties later.

4. CONSIDER THE SITUATION

SURROUNDING THE MOVE

Are you going away for a few years and looking to come back to the area later? Renting your house may be cheaper rather than incurring sales commissions to sell it and purchase another one when you return. The same should apply to when you get a temporary job transfer and are planning to come back to the area once done with the job.

What if you’re moving far away and not planning to come back to your current area? In such a case, you should remember that managing a remote rental is a whole new different story. Travelling often to visit your rental can be costly. It’s best to hire a property manager to deal with the day-to-day issues and potential emergencies at your property— of course without forgetting that this comes at a cost. So, before you settle for this, make sure you’ll be able to pay all your expenses and still make a substantial profit from your rental property. If not, selling is the best option.

Work cited.

https://www.forbes.com/sites/ brandonturner/2016/10/04/should-you-sell-yourhouse-or-rent-it-out/?sh=7a1a66db5a2b.