Consider Renting If:

Consider Selling If:

Will It Cash Flow?

The next big thing is the potential cash flow of the property. Start by finding the expected market rent for your property (Link to rent analysis offered free by RCW!) with the help of a local real estate professional. Once you know the rental income your property would bring, it’s time to run the numbers. Below is the formula to calculate a property’s yearly cash flow and an example for you to chew on. Cash flow for the property here is $4,775/year, and positive cash flow is great!

Cash Flow = Gross Rental Income - Payments (mortgage/taxes/fees) - Avg. Yearly Maintenance Expenses

 $4,775 = $28,200 (12 months x $2,350/month rent) - $21,600 (12 months x $1,800/month) - $1,825

Managing the Tenants

So you understand your property’s valuation and the cash flow to expect if rented, great! There is one more big factor in this…are you ready and willing to handle tenants? Being a landlord requires a high level of care and responsibility for tenants. This is someone’s home, so prompt and reliable service will be important to them. Dealing with tenant requests and maintenance can be time consuming and require lots of back and forth, but if you’re willing to develop sound processes and manage relationships efficiently, you're on your way to being successful!

A Final Word

Deciding whether to rent or sell is a choice you can make only after considering the options and analyzing the property as an investment vehicle. Use this cheat sheet to help make a smart and informed decision that you’ll be happy with!

Want to see how RCW manages properties in your neighborhood? Contact us!