3 reasons I decided to rent out my house instead of selling - Business Insider

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They could have made $50,000 overnight by selling

when we moved; we chose it specifically for that reason. Yet, now that we had an offer in on another home and were serious about moving, we had cold feet about becoming landlords.. Here's how we decided that the risk of becoming landlords was worth it. If we sold our home, we would have likely made about $50,000 in profit. That may not be a massive sum to others, but for us, it would have been life-changing money.

If we rented out the home, we would pocket about $500 each month in profit. It would take roughly 10 years to earn as much as we could profit from selling. But at the end of that time, we would still own the home and have it as a financial asset. It was in an appealing area, and we had put just 3.5% down since we were first-time homebuyers. Even with no debt, it would take us a long time to save the 20% down that you need when buying an investment property that you won't be living in. Some people would say that it's foolish to have a rental when you also have non-mortgage debt. I don't claim to know better than those experts.

In addition, we had an emergency fund that could cover any maintenance issues at the rental. This gave us peace of mind that we would never be in a bind over issues at the rental.

 

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