Fixer Upper Investment Property | Tuscana Properties

Newly Remodeled Fixer-Upper: Should you rent it out or sell it?

Renting vs. Selling Your Fixer Upper Investment Property

If you are struggling to decide what to do with a fixer upper investment property, you are not alone. Many investors purchase and renovate fixer upper homes because they are cheaper to buy and have the potential to generate a good return on investment. Other people remodel their existing homes, intending to move to another house.

Whichever situation you’re in, you have two solid options for making a return on your investment property. You can become a landlord and generate ongoing rental income, or you can sell your house and avoid being saddled with ongoing rental responsibilities.

We can’t tell you exactly what to do, because everyone’s situation is different. Instead, we will explain the advantages and disadvantages to either selling a house or renting it out. We will also give you tools that you can use to make the decision for yourself!

Should You Sell Your House or Rent it Out?

One of the first things you should do when making your decision is to research the overall economy and housing market to see what current rental income and home sale averages are in the area. You can also use a return-on-investment tool to compare the financial impact of each choice and perform a for the rental option.

Ongoing financial responsibility is a common and valid reason that homeowners choose to sell instead of rent their investment property. Although becoming a landlord can be a great way to guarantee tax deductions, ensure an extra source of income, and diversify your assets, it’s also a responsibility that should not be taken lightly.

Selling, on the other hand, is one way to liquify your assets and make a large one-time return on investment. Selling a fixer upper home also means, again, that you won’t be taking on additional responsibilities. This is an especially attractive option for those who have built up equity in their home.

How to Sell a Fixer Upper Home

If you choose to sell, you may have some work to do! The following are our recommendations for how to prepare and sell a fixer upper home fast.

Remove the personal element from your homeGet rid of clutterFinish any last minute projects or touch upsDeep cleanStage your homeCheck your curb appealComplete inspectionsTake great photosConsider every offer

We recommend that you always choose a local realtor when selling a home. Locals know the market, the people, and the houses. Choosing the right asking price for your home is usually the key factor in how fast it will sell, so it’s important that your realtor knows the market well.

If your fixer upper investment property is in the Bay Area, consider Tuscana Properties for your realtor! They have over 25 years of expertise in the local housing market, specializing in sales that are smooth and fast.

How to Rent a Fixer Upper Home

While the thought of being a landlord might be intimidating, renting doesn’t necessarily mean that you have to manage your rental property yourself. You can hire a property manager to handle everyday tasks like interviewing tenants, facilitating necessary repairs, and taking care of the finances. If you choose a reliable, trustworthy property manager, you’ll get the benefits of owning rental property without dealing with most of the responsibilities.

According to state laws and statutes, landlords do have several responsibilities to their tenants, including:

  • Making repairs for structural issues, HVAC systems, and appliances
  • Complying with housing codes in providing a habitable residence
  • Refraining from discrimination
  • Abiding by eviction laws
  • Giving 24 hours or more notice before entering the residence unless there’s an emergency

Financial obligations for landlords include:

  • Making necessary repairs or replacements
  • Hiring a property manager, landscaper, or other professionals
  • Marketing the rental property when looking for tenants
  • Mortgage payments, property taxes, and insurance

Marketing a rental property is very similar to marketing a home for sale. To put your fixer upper home up for rent, you will need a trustworthy local realtor to help. You will also need to handle all repairs, touch ups, and staging before you list your property. Fixer upper houses for rent are a huge market right now, because everyone loves a freshly renovated property!

What Will You do With Your Fixer Upper?

Selling and renting out homes are both viable options. You should consider many factors and carefully weigh the financial advantages and disadvantages of each choice before making your decision. If you have more questions about what to expect from the markets around the Bay Area, reach out to our experts today!

More Questions? Follow-up With Us!

If you have more questions about what to expect from the markets around the Bay Area, don’t be afraid to reach out to us today. Our experts are experienced in all property types and the entire San Francisco Bay Area, and we can help you to find what you need to know today.

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