Should I SELL or RENT My House? + How to Finance Home Renovations (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 8 November 2024

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

You’re planning to move soon and are asking yourself, “Should I sell or rent my house?” What if you’ve got little-to-no cash flow potential? Is future appreciation worth betting on? Maybe you need to renovate before you sell or rent; now, the question becomes, “How to finance home renovations?” Don’t stress; we’ve got you covered on all fronts in this episode as we walk through how to decide whether to sell or rent, the best ways to fund home renovations, and answer the mother of all rookie questions, “Is house hacking dead?” With mortgage rates rising yet again and home prices still unaffordable in many areas of the country, does house hacking (renting out other rooms/units to pay your mortgage) still make sense? What if you can’t live for free anymore? Should you abandon the house hacking strategy entirely? We have some interesting thoughts on why we would or wouldn’t house hack in this housing market. Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: Whether you should sell or rent your primary residence once you move out The math behind house hacking and whether high interest rates ruined this strategy How to finance home renovations on your next rehab project Taking out a line of credit on your investment properties to fund future investments Whether to convert your property into a short-term rental (more work) or keep it as a long-term rental (less work) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Protect Your Properties with an LLC through Corporate Direct Ask Your Question on the BiggerPockets Forums Grab “The House Hacking Strategy” Book Find Investor-Friendly Lenders Should You Sell Your House or Rent It Out? (00:00) Intro (00:49) Sell or Rent Out Your House? (07:12) Short-Term vs. Long-Term Rentals (08:47) Bet on Appreciation? (12:41) How to Finance Home Renovations (18:48) Is House Hacking Dead? (26:41) Ask Your Question! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-481 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Let's get your questions answered. I'm Ashley Care and I'm here with my co-host, Tony J. Robinson.
0:06.7	And this is the podcast to help you kickstart your real estate investing journey. And today,
0:11.1	we're going back into the Bigger Pockets forms, which if you didn't know, the BP forms are one of
0:15.3	the absolute best places for you to go as a rookie to get your real estate questions answered
0:19.7	by real estate experts like me and
0:21.4	Ashley. Now, what we're going to discuss today, we'll talk about how to determine if you should
0:25.1	rent or sell your property. We'll talk about how to fund the rehab for Flip and we'll discuss
0:31.2	if house hacking is dead in this high interest rate market. Now, before we jump in, we want to
0:36.8	thank Corporate Direct. This episode want to thank Corporate Direct.
0:37.9	This episode is sponsored by Corporate Direct.
0:39.9	Protect your properties with an LLC and let Corporate Direct take care of the paperwork.
0:44.1	Go to Bickerpockets.com slash direct for a free 15-minute consultation and 100 bucks off
0:50.6	if you mention the podcast.
0:51.8	Now, let's get into the show.
0:52.7	Okay.
0:53.1	So the first question
0:54.7	I pulled today is my wife and I recently moved to Lynchburg, Virginia for work and we'll be
1:01.5	living here for approximately a year and a half. Our work is expected to be completed by early
1:07.3	2026, after which we plan to move back to our hometown. In the meantime, we purchased a home
1:12.8	with the intention of converting it into a short-term rental once we leave. We also plan to finish the
1:18.6	basement, which would add about 700 square feet of living space. Before purchasing the property,
1:24.5	we ran preliminary numbers and converting it to a short-term rental
	...

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