Have you been tossing around the idea of selling your Des Moines home this year?
You’re not alone!
Many people are speculating that this year would be a wise time to sell. However, before you decide to pull the trigger and list your property, I want to urge you to consider a profitable alternative; becoming a landlord.
Today, I’m going to explain why renting your Des Moines property would be wiser than selling.
The Job Market Is Strong
I’m not sure if you have noticed but the Des Moines job market is hot, hot, hot my friend! As a landlord that is music to your ears for a few reasons. Primarily, it means that there is an influx of young professionals moving to the area to pursue well-paying jobs and careers. Translation? The pool of high-quality tenants is growing larger and larger. As an added bonus, when the job market causes the population to spike higher than what housing can keep up with, it means you can charge more for rent.
Positive Cash Flow
Just imagine what it would be like to have an extra $900 in your pocket every month. What would you do with that extra $10,800 of annual revenue? That fantasy could become your reality if you choose to rent out your Des Moines home rather than sell it because the average monthly rent in Des Moines is $900. Even if you require a mortgage to go purchase your next home, you can use the cash flow from your rental to cover that cost.
As a Des Moines landlord, you instantly become eligible for a slew of tax deductions. I would advise you to set up an LLC so that you can treat any and all expenses associated with the upkeep of the property as a business expense. You would be surprised at just how quickly and how high those deductions can add up.
Here are just a few examples of what you’ll be able to write off:
- Your taxes
- Insurance premiums
- Travel expenses
- Maintenance and repairs
- Loan interest or points (on your mortgage)
Two of the most common reasons that people sell their home and move are for a new job or a relationship. Now, I’m not trying to be a Debbie Downer here, but those jobs and relationships don’t always work out. If you elect to hold onto your current Des Moines property, you will have the added security of having somewhere to go to get back on your feet.
Property Values Are On The Rise
Remember how I said that our booming job market held several benefits? Well, not only does it help to drive up the average rent, but it also contributes to a rise in property values. Right now, the property values in Des Moines are steadily rising, just as they have around the country. Even if (or when) there is a cyclical dip in the market in a few years, it is likely that your property will continue to rise overall. Selling your property now will not only cheat you out of the cash flow from high rent rates, but potentially limit the profit you would earn from appreciation.
Still Want To Sell?
If you are firm that you want to sell your Des Moines property, you are going to need a rock-solid strategy to make sure that you get the best possible results.
Believe me, there is plenty of money to be made if you have the right resources, advice, and negotiator on your side.
When you hire me to sell your Des Moines property, I’m going to over-deliver on all fronts to make sure that we achieve your goals. Let’s set up a time to chat so I can show you how much your property is worth today and share my customized plan for helping you get the offers you deserve.
I hope everyone had a great easter! Even if you don’t celebrate the religious aspect, Easter is always a great sign of that spring magic. As the weather continues to improve, keep on the lookout for great investment opportunities!