Being part of a military family comes with one-of-a-kind challenges and opportunities that many do not encounter, especially when it comes to engaging with the complexities of the real estate market. One of the biggest questions that we help our RedDot Army answer? Should I sell my house or rent it out?
Whether you’re constantly relocating due to deployments, or tired of feeling like your life is always in the air because you’re always in transition, let us, a certified Service-Disabled Veteran Owned Small business—help.
At Operation RedDot, as the only 100% veteran-owned and operated brokerages in the JBLM area, we’ll share our insights that can give you an assist determining the most advantageous course of action that’s best for you—because we’ve been there, too—and we want to ensure that you never have to go this alone.
Selling vs. Renting: Breaking Down the Options
Selling Your Home
Divesting your property can yield prompt financial gains, especially if we are in a competitive seller’s market. This path might be ideal for you if:
- You need expedited access to financial resources. Selling can provide you immediate access to fund for reinvestment or life goals.
- Robust Buyer Activity: High buyer demand can lead to better offers.
- You are relocating. If managing the complexities of a rental property from afar seems like too much on an already full plate.
How we’ll help you evaluate potential profits by factoring in:
- Closing costs and fees.
- Capital gains taxes.
- Net equity after the sale.
Renting Your Home
Renting could provide consistent revenue flow and be a great long-term wealth-building potential source. But does renting make sense for you and your family? It might make sense if:
- The property is in high demand. Homes near JBLM or their desirable school districts can often attract reliable tenants for you.
- You have minimal outstanding mortgage liability. High rental yields can significantly boost your profits.
- You plan to return. Retaining ownership provides long-term adaptability and can allow you future flexibility.
We can help you assess:
- Projected rental revenue relative to expenditures.
- Property maintenance costs.
- Market rental rates in JBLM and beyond.
Is Your Property a Prime Rental Candidate?
It’s unfortunate, but not all properties possess the attributes necessary for rental viability. How do you evaluate if yours is? Consider:
- Location: Proximity to JBLM, educational institutions, and essential amenities is paramount.
- Condition: Properties in excellent condition are more likely to secure high-caliber tenants.
- Market trends: Rental demand and average rental prices in your area will depend this.
When Should You Sell a Rental Property?
If you have a rental property and have been considering selling it, knowing when to do is absolutely crucial. Some considerations for selling your rental property:
- Escalating Maintenance Expenditures. Aging properties requiring recurrent repairs may erode your profitability margins.
- The market is peaking. Selling during a high-demand period can maximize your return.
- You’re ready to reinvest. If you have the profits and are ready, you can leverage generated proceeds to pursue higher-yielding investment opportunities.
Can I Move into My Rental Property to Avoid Depreciation Recapture?
Yes, but keep in mind this will involve careful timing and strategic planning. Depreciation recapture occurs when you sell a rental property, but moving in and converting it to a primary residence can mitigate this tax burden.
Military Homebuying: Quick FAQs
How to buy a house in the army?
If you’re new to the process, or just need a refresher session:
- Obtain your Certificate of Eligibility (COE): This verifies your VA loan eligibility.
- Collaborate with a Realtor Proficient in Military-Specific Housing Dynamics: There are aspects to the military life that, to be honest, some civilian real estate agents simply do not understand. Operation RedDot specializes in helping service members find homes near JBLM because we’ve been there, waiting for keys in hand.
- Secure VA Financing. VA loans offer no downpayment, competitive rates and no private mortgage insurance (PMI.)
Can I Buy a House While in the Navy?
Aye aye. Navy personnel can also access VA loans and other benefits. Similar steps apply to you, but flexible scheduling, digital tools, and someone who has your six can accommodate deployment timelines.
What Benefits Do the Military Get for Buying a House?
Military families can access:
- Va loans. Zero downpayment and no PMI.
- Basic Allowance for Housing (BAH). Offsets mortgage liabilities during active stationing.
- PCS Flexibility. Transition the property to a rental asset upon reassignment to a new base.
Understanding IRS 1031 Tax Exchange for Sellers
The 1031 Tax Exchange may facilitate the deferral of your capital gains liabilities if you reinvest proceeds from your sold property into another “like-kind,” property. This is a strategy that can enable property investors to strategically expand their asset holdings.
We can guide you through the requirements to help make the most out of this opportunity.
Should You Opt for Short-term or Long-term Rental?
Short-term Rentals: Think flexibility and higher income potential. We’ll discuss the active management required and help you navigate any regulatory challenges.
Long-term Rentals: Consider the stability and predictability of a long-term rental. We’ll explore the benefits of easier management and long-term tenant relationships.
How to Screen Rental Tenants Effectively?
Finding the right tenants is key to a successful rental experience. We’ll share strategies for thorough tenant screening, including background checks and income verification, to minimize risks and ensure a smooth rental journey.
Crafting Your Real Estate Strategy: Sell or Rent a House in JBLM
Whether you choose to rent or sell your house, understanding JBLM’s unique housing market is the key. Our local expertise can help ensure your decision aligns with current trends and your specific long-term goals.
Why Sell?
- Tap into a seller’s market during the right time.
- Simplify your finances
Why Rent?
- Helping you generate consistent passive income streams
- Retain flexibility for your future.
Ready to Decide? We’re ready to help you! Let’s Connect!
Choosing whether to sell or rent a home is a major undertaking and step in your life. At Operation RedDot, our expertise lies in crafting a tailored housing plan of action for military personnel and veterans and families near JBLM.
Contact us today for a free property analysis so that we guide you to take the next with the confidence that you’ll be making, and taking, the right steps toward financial freedom and make the uncertainty of selling or renting a more straightforward process with information and our expertise by your side.