I bought a home a few years ago but it’s time for me to upgrade. Should I keep my first home and rent it out, or should I sell it while the market is so hot?
Have you ever heard of mailbox money? It’s a wonderful term that we can all appreciate: “Mailbox Money” is income that comes directly to your mailbox without requiring heavy lifting in the here-and-now, also known as a passive income. Mailbox money is a fantastic strategy for wealth-building, but is it the right strategy for you?
For many, it seems like managing a property on top of buying a new one is an overwhelming amount of work, however the return on investment can be well worth it! Not only do you get a passive income that will help pay your mortgage on that property, but you can write off the income on taxes because of house depreciation. Your property value will likely increase in the long run as well, so it’s a win-win-win to hold on to your home, especially if it is in a high rent area.
Even if those benefits aren’t compelling enough, the burden of earning that mailbox money can indeed be lighter! Companies that are dedicated to property management – like AH Management – charge a small percentage of the rent each month to take care of everything for you. If something breaks, they will hire someone to fix it! If someone doesn’t pay their rent, the management company will attempt to get the renter to do so! If a tenant moves out, the property management team is responsible for finding someone new! You can’t beat the convenience!
If you’re in an area where rent is expensive but your mortgage is reasonable (which describes a lot of the DMV!), it can be really beneficial to have some extra cash flow in addition to the long-term benefits of owning multiple properties… like major wealth building. The internet has tons of resources to back up our claims, but in short – YES! Hold onto that original residence if it won’t be a significant financial burden, and it will definitely pay off in the long run!
To learn a little more about property management services and all other information, feel free to contact Katja Hom at email@example.com.
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