First Question: Should I Sell or Not Sell?

Shawn Realty Youtube: Should I Sell Or Not Sell.

Your primary home you currently own can become your first investment property. So you owe it to yourself to ask, “should I sell or not sell?” multiple times and look at all the options to keep the property as much as you can before selling it. Often times, the house you owned for the last 5+ years have gained a lot of equity that may give you an opportunity for you to become an investor. Many established investors are currently looking for the properties like yours for the-5 years-ago price. Looking from investor’s point of view, you already have that exact property that you bought 5 years ago. So why not keep that property, turn it into your first investment property and potentially make it into cash generating business?

Questions to ask yourself before selling your real estate:

  1. Can I buy my next property without selling my current property?
    • What would be my net gain/loss if I rent my current home?
      • Net Gain: Market rent price – Full house payment (mortgage, tax, insurance, utility, maintenance cost, management fee).
      • If net loss, what would it look like if I had to pay $200/month out of pocket to break even? Costing $2400/year to keep as an investment.
      • What would it look like in 3 years if/when the rental market rate goes up while paying down the mortgage principal?
      • What would it look like when the mortgage is paid off in 20 years?
      • What other options will I have financially then?
  2. What are my current options? Here are a few options you might consider.
    • Cash-out refinance first and wait to qualify for the next mortgage.
    • Apply for a HELOC (Home Equity Line Of Credit) and use that money as downpayment for next house.
    • Borrow money against other investments you have.

One of the real estate regret I still have is selling my first Portland home that I bought in 2005. I hope you don’t have the same regret by selling without looking into keeping it. Ask yourself this question anytime when you are thinking about selling real estate.