The answer is really going to come down to your financial goals and what you want as far as a time investment.
Renting can be a long-term financial gain if the property is well-maintained and tenants are responsible. If you take out a mortgage on the rental property, it will take time for you to see a return on that. You’ll have to take time to create lease and rental agreements as well as prepare for the worst case scenario such as late payments or eviction processes. Being a landlord is certainly not for the faint of heart if things start to go wrong, but you can prepare for those things and reap the financial benefits that will come steadily.
Fixing up properties for resale can also be lucrative. However, this usually requires much more investment as you repair and update the home so you can make a profit. You have to be savvy about how much you should invest in certain upgrades so that you are sure to get the best return. Additionally, you always run the risk of the home not selling in the timeframe you would like. You should be mentally and financially prepared that your home may not sell immediately and you should know how that will impact you financially. Know the market inside and out so that you have a much better chance of selling if this is the option you choose.
Making this decision will come down to your financial ability as well as your personality. Do you want/enjoy working with tenants or would you prefer to make deals with one-time buyers? Evaluate your budget as well as your personality before choosing which option is right for you.
Whether you choose to rent or sell, there is certainly some legal implications involved. You want to be sure that no matter what kind of contract you are signing (whether or rental agreement or a sale contract) that you are protecting the bottom line of your investment.offers all-inclusive help with real estate law w/ the help of amazing lawyers. We have worked with clients that have created a business focused on flipping and selling and those that are long-term landlords. Stop by today for a quick and easy price quote!