You’ve come down on orders and you own your current home – is it better to rent the home when you leave or sell it? It depends – there are both monetary and personal lifestyle considerations to take into account. Before making any decision, we need to fully explore and understand our options, so let’s take a look.

If you’re only concerned about the money, then this shouldn’t be a very tough decision to make; it boils down to this question: if I sell this house, will I be able to use the check I’ll get at the closing table to make more money than I would make if I kept the house and rented it out instead? If the answer is yes, then sell. If not, then it’s better to rent it out.

But finding the answer to that question can be tricky, especially if you’re new to real estate investing, so let’s look at an example.

Let’s say you can…

a) sell your home and put $50k in your pocket, or

b) rent it and make $5000 in profit each year. This equates to a 10% return on your equity, which is pretty decent.

If you can put that $50k to work making more than 10%, then perhaps you should sell. If not, look toward renting it out.

You might be thinking at this point “well how do I know exactly how much equity I have, or what my property will rent for?” Glad you asked – the easiest thing to do is to seek the advice of a trusted real estate agent. Keep in mind that an agent will have a significant monetary incentive to convince you to sell the house (that’s how agents get paid!), so make sure that this person is someone you really trust. If you don’t have someone like that, ask around for some referrals and interview two or three to get their opinions on market sale price vs rent price. Then, when you’re ready to run your numbers, check out our blog on running the rental numbers.

But, it’s not usually all about the money. We all have a personal preference. I like to be a landlord, and I don’t like selling houses once I own them. I’ve held onto homes even when I have a lot of equity in them that could better be put to work elsewhere. In cases like this, you might want to explore doing a cash-out refinance of the home, or even using a home equity line of credit (HELOC) to access some of that home’s equity if you don’t want to sell it. This will, of course, make your payment go up, but it may be a great option to access some equity.

Other folks just don’t want to be landlords, and I understand that. I sometimes get frustrated answering tenant questions and maintenance requests, especially when they call me at an odd hour to ask a dumb question (one time I had a tenant who didn’t understand that you’re supposed to brush the toilet bowl every once in a while and complained about mold in the toilet!)

There are ways to mitigate this hassle, the best being to hire a great property manager. A good manager will only bring the most important issues to your attention, but they will typically cost you 10% per month and also charge tenant placement fees.

In addition to the occasional late-night call, a landlord also has to be prepared to fix tenant issues quickly. You NEED to have a reserve fund set aside to cover major maintenance items that come up from time to time. In Georgia, for example, if the heat goes out, you must fix it ASAP (even if that means paying a few thousand dollars out-of-pocket to replace the HVAC system). So even if you do want to keep the house and it makes sense as a rental, make sure you can cover a major expense. Even home warranty companies do not always come through like they promise, so don’t rely on them.

As a practical matter, it is pretty difficult to self-manage after you PCS to a new duty station. But more on that in the next blog of this series!

Until then – need some questions answered? We love nerding out about this stuff! Reach us at our contact page.

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Written by: Pat Wilver

CLIENT VICTORIES

 5/5

Kelly Duncan at Trophy Point Realty Group helped us purchase our first home in Savannah, GA. Because we are a military family moving to the area, we needed someone who knew the area well and could guide us through the entire home buying process. During our first conversation, Kelly talked us through the process and ensured we understood what out-of-pocket costs we should expect. She then provided recommendations for mortgage companies (we ended up with a great rate) and set up our search criteria so we could start to understand the market. About a week before our house hunting trip, she started coordinating house showings for properties we were interested in. Because of her connections in the area, she was able to find us a property that fit our criteria and we were under contract before it even hit the market! She expertly dealt with the seller and was even able to have them pay for some of our closing costs (almost unheard of in this market). After closing, she’s been able to provide recommendations for local contractors and service providers, making our transition to the area seamless. We couldn’t have asked for a better realtor and highly recommend Kelly and Trophy Point Realty Group to anyone in the Savannah area.

Pat and his team did a great job selling my home in Savannah. He met with me a few months before I wanted to list to recommend some maintenance items to help me achieve a higher resale value for the home, and during the selling process he made it as easy and lucrative as possible. We went under contract at full asking price within days, and when the first buyer got cold feet and terminated he was able to achieve a second full-price offer very quickly. When that buyer asked for a price reduction after their inspection he was able to negotiate them down to half of their original reduction ask and we closed on time.

If there is anything I can stay about Trophy Point it would be that they were phenomenal throughout the entire process of selling my home. Pat was with me every step of the way, and most importantly he had a deep staff of employees that were equally knowledgeable and supportive throughout the entire process. Whether you’re purchasing or selling, you need Trophy Point to represent you. The team was instrumental in my success selling my home during my ETS from the military. They listed at an appropriate price, marketed the property well, and most importantly negotiated a very favorable contract that allowed us to live in the home after closing to help make our transition easier.

We house hunted with a realtor years ago, and with many disappointments along the way, we decided to rent and try again another time. We are so glad we did. Chuck Hudson was our realtor our second attempt on house hunting, and he well surpassed our expectations. Everything our first realtor said we could not do, Chuck proved we could. If we had a question, Chuck had the answers. He worked around our busy schedule, my husband and I work full-time jobs along with being full-time parents. So meeting for a house always meant after business hours or on the weekends. Chuck made us feel like a priority, not just as clients, but as friends also. He never gave us any run around or nonsense. And probably most importantly, he Always answered when we'd call or text. Never left us hanging. Never had us wondering about anything. If there is a way, Chuck will find it and make it happen. Hands down the most professional and personable agent we have ever met. We are thankful for him and his hard work.

Tucker and Trophy Point did everything to make my first-time homebuying experience in Savannah as easy and stress free as possible. Lending, inspections, and closing were a breeze and now I get to own my very own dream property. I would highly recommend anyone to work with this team of Realtors

Kelly was our realtor, she was truly amazing, we needed our house sold quickly and she was able to make that happen. She communicated very well and fast with us, she showed, marketed and even staged the house! It was such a breeze selling our first home, she handled everything and we felt very confident in her abilities! Highly recommend!

Kelly was a great help with selling our home and then purchasing a new one. From staging our home, joining us for our new house walk through and advising us with our contracts. Highly recommend Kelly when selling or buying!!!

The most important thing is finding what you want when looking for a home. Kelly Duncan cares enough to go every extra mile to achieve that. I am very pleased with attitude and ambition of finding the home I love. She is awesome, wonderful, and relentless. Those are the qualities you absolutely need in order to get the he home you want. I would recommend her to anyone that wants the best out of a realtor.

My experience with Sam Finney at Trophy Point far exceeded expectations. Throughout the entire process of buying a new home, Sam was always punctual, professional, and willing to go the extra mile so that I could get a great house within walking distance to Forsyth Park in a tough market! Quick to understand what I desired in a home, he kept me up-to-date with awesome options as soon as they were on the market. He tirelessly viewed home after home on my behalf during a busy time and sent videos of walkthroughs to ensure I would have an amazing home to move into. Even during the tedious processes of buying and through frequent frustrations, Sam always remained optimistic and ready to do whatever was necessary to see me through. His unselfish efforts didn’t go unnoticed as he constantly placed my needs first. If you are in need of someone who genuinely cares and will place your needs and desires before their bottom line, I highly recommend Sam! If I should need anything dealing with buying, selling, upkeep, or whatever home related, I will definitely reach out to Sam. If you're looking to buy or sell in Savannah, Sam's your man!

Pat and the team at Trophy Point Realty Group helped me find a perfect off-market Triplex in the Starland district of Savannah during my PCS move to Hunter Army Airfield. It was an opportunity that would have been very hard for me to use my VA loan to purchase if they didn’t have a direct connection with the seller. They helped to coordinate everything and negotiate some great seller concessions, making my move super easy. I was able to buy the property with only a few thousand out of pocket and my tenants pay my mortgage!

Calla and her whole team at Trophy Point Realty were amazing to work with. They helped make selling our house a seamless and stress-free process. I highly recommend them for all of your real estate needs.

Kelly Duncan was amazing! She was super accommodating of our needs and very patient and understanding. She's really knowledgeable about the area and the house buying process in general. She also has great contacts and was able to work magic with our contract. She was there every step of the way and found us the perfect house! Thank you!!

Mrs. Kelly Duncan, my realtor, did a PHENOMENAL job during our process of buying a house. She did this while we where in a different state AND having this be our first rodeo of buying a home. She made buying a house such a breeze, with no worries. She went above and beyond in communication, professionalism, and explanation. Additionally, ensuring we where getting a house that not only fit what we where looking for in aesthetics and financially but also ensuring it was safe and high quality when it came to its interior and exterior components. Mrs. Duncan is not your average realtor, she is far beyond average! She will do what it takes to please her customers. She would facetime me, upload videos in google drive if I was busy doing Army training, offer advice, explain the house buying process, and much much more! I highly recommend, in fact, I would only recommend Trophy Point Realty Group and Mrs. Kelly Duncan for I know they or Mrs. Duncan will get the job done!

Kelly Duncan is a pleasure to work with! She helped my family and I find a home in what I believe was one of the craziest markets. She made our experience stress free because she went out of her way to find the perfect home and for a great deal. Kelly not only ensured we had the space we needed, but she also considered the details of the home that fit our style. I am so grateful for her. She is super sweet and felt more like a friend than realtor. I would certainly recommend her to everyone and plan on using her in the future when duty calls for our military family to be relocated again.

If you need the most awesome realtor Calla Kimsey is your girl! She listened to everything we wanted without trying to push her own agenda to make a better profit. She is kind and caring and will be a life long friend to our family. This girl knows her business and does it so well. She will forever be our realtor!

Kelly was our realtor and was great! I was an out-of-state buyer so Kelly worked hard to keep me informed of housing options. She was honest and timely with details and closing. Overall, very pleased with my experience.

I have bought several investment properties with Patrick Wilver as my agent, and have had the pleasure to work with the entire team. Patrick, Wynn, Rich, Emily, and Tucker are the best in business and have become our go-to for any real estate transaction in the Savannah metro area.

Fantastic experience. I would most highly recommend them. I worked with the listing agent, Calla. She was very professional and responsive. She went out of her way to work with me and the seller and it worked out great. She even helped me with a few things after the closing.

When we realized we were PCSing we immediately reached out to Sam Finney to start learning about the area, the current market, and over a few phone calls and emails began to get a good idea of what we really wanted and how the process would unfold once we started making offers. The information that Sam was able to provide was invaluable in planning our move and once it came time to make offers he continued to guide us through the process all the way to closing. My wife and I were first time buyers and understanding that Sam was able to guide us through all the steps really well and made the process simple and painless. I would highly recommend Sam Finney and the team at Trophy Point Realty Group to anyone moving to Savannah, GA or the surrounding area!

Pat Wilver and his team Trophy Point Realty Group are some of the best real estate investor focused agents in the Savannah, GA area. They are very good at determining the true market rent and ARV of any given property and do a good job of estimating the rehab budget required to get a property to rent or sale ready condition. They have also brought great value to my business by connecting me with their network of private money lenders that were able to offer great rates and terms and creative financing solutions to fit my needs. They consistently sell deals that I bring them over asking price within days of going on the market. I would highly recommend Pat and his team!

The best real estate investment decision we have made to date is hiring Pat Wilver of Trophy Point Realty Group. We’re out of state investors and were looking to purchase, rehab, and lease-out a property in Savannah. Pat expertly handled every step of the process – from finding an off-market property that we could purchase at well under market value, to coordinating and overseeing the property’s rehab, to securing great tenants for maximum rental value. We were able to achieve an impressive return on our investment without ever setting foot in Savannah! None of this would have been possible without Pat’s competence, connections, and trustworthiness. He’s a straight-shooter, saved us money at every turn, provided invaluable insights into the local market, and promptly responded to all our inquiries. In short, I cannot more highly recommend Pat Wilver and his team at Trophy Point Realty Group.

Pat Wilver is a godsend! We were virtual clients and first-time home buyers. Prior to choosing a realtor we heavily researched and read reviews - if that is you right now, choose Pat. To say he has a wealth of knowledge about areas and real estate is an understatement. Within our first virtual meeting he helped us narrow down areas of interests and our musts. We knew that we would not be able to travel out to see every single home we loved, so it was important to us that a realtor could sub in as us throughout the home-tour experiences. He pointed out things we would have never know to look for as first time buyers and made us feel very comfortable with our endless questions. Additionally, he counseled and advised us with his knowledge of the market and home renovations. Home buying is an emotional roller coaster and Pat was there all the way. Finally, probably the biggest differentiating factor about Pat is his honesty and integrity. We found ourselves in a difficult market and we were very eager to find a home and he remained patient with us, worked hard for us, stayed true to his word & encouraged an investment mentality. Post-purchase he has provided amazing recommendations and has truly been helpful at every turn!

Kelly Duncan went above and beyond knowing my stress level on the situation in hand. We started out at slow start due to our situation and our concerns on finding a new house. In the end she made sure we had all information that could be provided and got us in a new place in less than 60 days. I would recommend Kelly hands down.

I had the opportunity to partner with Kelly on a mutual client's purchase. Kelly was professional and thorough throughout the process. I knew our mutual client was in good hands. I will definitely recommend Kelly in the future.

Pat Wilver and his team at Trophy Point Realty Group were instrumental in my success as a long-distance real estate investor. They helped me to find, analyze, acquire, renovate, and flip a property in Hinesville, GA without me ever having to set foot in the property. They set us up with a great contractor who completed the work at a high standard of quality, secured a buyer over asking price and closed the sale in about a month. I would definitely recommend them to anyone looking to find a great rental property or flip in the Savannah, Hinesville/Ft. Stewart area.

Our experience with Pat Wilver of Trophy Point was beyond what was expected. Throughout the entire process of selling our current home and buying a new home, Pat was always punctual, professional, and willing to go the extra mile so that we could get what we wanted and needed. He never complained about having to go to home after home and even sometimes to the same home multiple times. Even during the tedious processes of selling and buying when we would be frustrated with things, Pat always remained optimistic and ready to do whatever was necessary to see us happy. His tireless unselfish efforts didn’t go unnoticed. So if you are in need of someone who genuinely cares and will not just be worried about his/her bottom line, I highly recommend Pat and if we should need anything dealing with buying, selling, upkeep, or whatever we definitely will reach out to Pat. Keep up the outstanding work!!!!!!!!

Been working with the Trophy Point Realty team for some time now and they have exceeded my expectations in every way. They are very knowledgeable about the real estate market and the best in town when it comes to knowing how to get a home sold or finding the perfect home for an investor or homeowner. Strongly recommend working with this team. You won’t be disappointed.

Christian Woodberry was very knowledgeable and professional! Will definitely use him again! So polite and patient.

Very nice and polite also very clear thanks

Kelly Duncan did an amazing job as my agent. Extremely knowledgeable, and helped guide me through buying my first home. I can't recommend her enough!

My experience with Trophy Point was nothing but perfect. Pat showed me an upwards of 20 properties which ultimately led to my first home purchase. Trophy Point is incredibly military friendly, and are able to work around any schedule. Pat and his team worked out all the details, allowing me to ultimately close on my first house while deployed. He is very knowledgeable about the Savannah market, so if you’re looking for a new family home or investment property, he is your guy.

What Is Your Home Worth?