Building Equity with Rent
When you own a rental property, you’re getting a piece of real estate that someone else is paying for. If you have a mortgage and we rent the property out for you, your tenants are paying the mortgage for you. You get to keep all the equity that’s building in the asset without paying for it on a monthly basis.
Rental properties provide some outstanding tax advantages for you. You can work with your tax planner or CPA and itemize the expenses associated with that rental property. This includes your management fees, which will go a long way in sheltering some of your income from taxes.
Avoid Selling at a Loss
When you own a home, you want to avoid selling at a loss, and the option of renting your property out can spare you that. When you have a piece of real estate that is below market value or you’re underwater on your mortgage, selling can be extremely difficult. You’ll have to face losing money on the sale, or you’ll need to come to closing and have to write a check. The better option is to rent the property out. It enables you to continue growing equity in the property. You’re paying the mortgage down while you collect rent from your tenants.
When your home value isn’t where you want it to be and you need to wait for the market to slowly get better, renting out your home is an ideal way to endure the market improvement. It allows your mortgage value to go down and the value of your property to go up. After a few years, you can break even or earn money on the sale or perhaps even decide it’s a great investment, and you’ll continue renting it out for many more years. If you need any help with Columbia property management, please contact us at Turner Properties. We’d be happy to answer your questions.