Through out the military community, spring brings warmer weather and the beginning of PCS season. Orders are trickling down presenting service members and their families with big decision: to rent or sell their home! It’s a big decision, with many factors to consider. Let’s take a look at the options and points to consider for each.
Should I SELL My House ?
Putting your house on the market to sell has it’s benefits….why might this be a good option for you?
VA Loan Options: If you purchased with a VA loan, selling it outright may restore your VA loan entitlement and make it easier to purchase a home at your new duty station.
Management: Selling your home eliminates the need to manage a home from a distance and depend on the ability to find and keep tenants.
Expenses: Selling your home eliminates the worry of paying 2 mortgages if you purchase at new station.
Timeline: PCS timelines can leave military families with little time to list and market their home, leaving you responsible for a mortgage on an empty house. Can you afford to pay the mortgage on an empty house if it sits on the market for 3 months to a year?
Sell Fast: Real Estate Investors can purchase your home in days vs. months, eliminating paying agent commissions as well. Investors purchase FAST for CASH and AS-IS. Many times they will pay closing costs for you as well.
Hiring an Agent: You could use the services of a real estate agent, incurring the cost of their commission of 6%.
Should I KEEP my home and become a Military LANDLORD ?
If you own your home, maybe you thought you would return to the area to retire. What should you consider when deciding whether or not becoming a landlord is for you?
Future Plans: Planning on returning to the area? Rent your home and retain ownership.
Finances: Renting your home could offset the cost of your mortgage, insurance and taxes. However, every month the house is not rented it’s an extra financial burden.
Maintenance/Management: Becoming a landlord is not just about rental income. You will be living far enough away that managing your rental (emergency repairs and regular maintenance) will present a challenge. There are costs associated with maintenance and management.
Rental Market Conditions: Check realistic rent levels. Unfortunately, the rent may be lower than your mortgage payment, but if you want to find a tenant, the rent must be comparable to what’s in the market.
Finding Tenants: You will need to maintain steady tenants to preserve rental income. You will need to list your home to attract potential tenants
Hiring a Property Manager: You will need to screen and hire one you trust to care for your home. Homeowners commonly find out PM’s don’t fix things or even answer tenant calls, they just collect rent.
Expenses: Property Managers normally charge 10% of the rent collected. They also collect a repair deposit of 8-10% so they can pay for maintenance and emergency needs.
If you choose to sell your home, then www.AButterflyProperty.comwill purchase your home AS-IS, QUICKLY and for CASH. Give us a call at (931) 542-4373 and we’ll discuss all the ways we can help you PCS stress free.