Why It Is a Good Idea to Rent out Your First Home When You’ve Bought Another

Despite the rise in the overall home prices, there are many real estate markets that present a huge opportunity for potential buyers in terms of wealth building. This becomes especially true when you buy a second home. Undeniably, selling your first vacant home to a “we buy houses in NJ” company would be the best and most profitable idea. But if you don’t want to sell it right away, renting the house out could prove to be highly beneficial.

Let’s take a look at the reasons why you should take this route instead of keeping the home vacant.

You’ll Have an Additional Income

The rent you can charge for the first home depends on various factors such as locality, condition of the house. However, by doing the required renovation, it’s possible to charge a decent rental that would help you cover your insurance, taxes, mortgage, and usual maintenance costs.

You Can Get a Better Home Value Later

In case you aren’t satisfied with the current value of your home, renting it out can bring some additional income your way while you wait for the price to appreciate. This would be especially beneficial if homes in the area are appreciating rapidly.

Tips To Make the Most Out Of Your Rental Property

Now that you know why it’s a smart move to rent your first home out, let’s see some strategies that would help you maximize its rental potential.

Doing Improvements

Doing necessary improvements almost always helps to get the maximum value out of your rental property. Focus on doing inexpensive yet important things like mowing the lawn, planting flowers on it, adding new hardware on cabinets, adding a new coat of paint on them, cleaning the property thoroughly by professionals, etc.

Hiring a Real Estate Agent

If you want to eliminate the hassles associated with advertising, showing potential tenants the home, running their background checks, etc, hiring a real estate agent could be your best option. This would be also especially beneficial if your rental home is in a different locality. Of course, it’d be an added expense but it’d make the process much easier for you. However, it’s important to understand that it’s quite an uphill task to hire the right real estate agent. There are two ways through which you can get this right – talk to a reputable “sell my house fast NJ” company to get some references or follow these simple yet highly effective methods.

Parting Thoughts

If you’re thinking of building wealth utilizing the real estate market, renting your first home out would be a highly effective idea. If the rents continue to increase in the area and you plan to keep the home rented, your return on investment should be good enough along with the gradual appreciation in the home value. Usually, the hardest part seems to be finding good tenants and dealing with bad ones. But joining hands with a top-tier “we buy houses in NJ” company should help you sail through difficult situations effortlessly.

 

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Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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