Signs You Need to Let Go of Your Fixer-Upper and When to Keep It

It is not always easy to renovate a fixer-upper, depending on the luck of the draw, which may lead you to ask yourself one of two questions: Should I sell my new property or rent it out? RE/MAX Realty Advantage has some pointers that should, hopefully, steer you in the right direction.

Reasons why you should sell your fixer-upper

For entrepreneurs who want to make a large profit in a short time, The Motley Fool notes that flipping homes quickly is a popular option nowadays. Other reasons you may want to consider selling your fixer-upper include the fact that you are not legally obliged to maintain the property for the foreseeable future if you were the landlord, for example. And your income earning

potential could be huge depending on how quickly you can renovate a property for resale. Of course, how much you could potentially make from a sale would depend on the market value of similar properties in the San Antonio area. So, as Moving.com points out, be sure to do the necessary research to ensure that you are investing in a property that could potentially sell at an excellent price.

Cons of selling a fixer-upper

Selling a property quickly can have its downsides. For example, you might have to pay more taxes on it. And you could face the possibility that your property may not turn the profit you expected due to factors beyond your control, such as fluctuations in market prices or unexpected renovation costs that could be higher than normal.

Why you should rent out your newly renovated property

If you are looking for long-term passive income, renting out your fixer-upper could be the best option. Renting out your property has other benefits, such as tax-deductible benefits that come with maintaining and managing the property. Moreover, keeping property to rent it out is a stable investment that will most likely appreciate over time. Gauging how much to charge for rent starts with researching what other properties are going for, so go online and see how hot the rental market is in your area. You’ll find that San Antonio is a big rental town, with more than 700 houses currently available for rent.

The cons of renting your property

The downside to renting your property is that you will have to manage and maintain the property yourself (if you don’t have a property manager to do it for you). This can be time-consuming and overwhelming if you don’t have the capacity to handle all your landlord responsibilities, such as vetting the most suitable candidates to rent your property, and ensuring that the rent is paid on time.

Market your newly completed home

No matter if you decide to sell or keep your property, you’ll want to market your newly renovated property as best you can so that you can secure the best price for it. So, be sure to take pictures that highlight those unique (or most coveted) features that stand out to you to put tenants’ or buyers’ minds at ease that they are getting their money’s worth, at the end of the day.

And if you have a knack for social media, then this is one of the easiest ways to market your fixer-upper at next to no cost at all.

Deciding which option is best for you

The decision between renting or selling will most likely come down to several factors. These include how much you hope to make from either selling or renting a home, when you expect to make it by, and whether you want to be in it for the long haul or not.

Image via Pexels

Real estate pros Michelle Plazek & Kim Mauldin of RE/MAX Realty Advantage are dedicated to providing exceptional, personalized service for all of our clients. Team up with Michelle and Kim today! (210) 293-4013