Pro’s and Con’s of being a land lord.  I have heard it often recently from a couple of clients.  So I thought I would share a few things to help you get started deciding. I have not had a chance to develop the investor pages yet. I will cover these topics there in the future. For now…

 1.  Pro cash flow. Con its not a lump sum and you have to collect it. Use this Calculator to figure out which you would make more money at renting vs. selling. Two of the inputs are your expected rental income and likely sale price of your home. This is where I come in contact me with your address and I will do a comparitive market analysis on your home to give you the likely sales price and ask me aslo to do a rental income projection.

2. Pro depreciation, Con no homestead exemption. Here are some real estate tax tips. Real Estate tax advanges are many but most have some degree of complication, this is definitely not for the tax novice. You need to see a tax advisor to check as to the actual benefits likely to accrue to you.

3. Pro you are an investor. Con you are responsible for where other people call home. When you expect the property to increase in value and you want to hold on, this may be a good option for you. Escape the responsibility part by paying a property management company but this is expensive and cuts into the pro from reason number 1.

To make an educated decision you should consult both your tax advisor and me of course, your Realtor.