I have an investment property in Philadelphia with some equity in it. We’re moving to Florida. I was wondering what’s the smarter thing to do:
- Hire a property management company and keep the property.
- Sell the property and use the equity to pay down debt and for a new home.
- Something else I’m not thinking about.
Your thoughts would be very appreciated!
I would look at it as 2 moves. I would move my home and move my business. These would be 2 separate and distinct activities. My suggestion would be to sell the rental property in Philadelphia and use the profits to buy a rental property in Florida. I would sell my personal residence in Philadelphia and use those proceeds to buy a home in Florida. In other words I would use my business to pay for my business and my home to pay for my home.
I assume you are relocating for a job. If that is so, you have to remember that a job provides an income. An income is not a goal; it is a tool that allows you to develop wealth. Your business is your wealth. Don’t absorb the profits into your lifestyle. That is like eating the goose that lays the golden egg. It will make a mighty fine meal, but your future wealth will suffer.
It’s easier to have your rentals close enough to kep an eye on them. So… will you be returning to philidelphia, or not? If you aren’t going back, move your business closer to where you live.
Property management can be very difficult and with only one unit, you are going to have even more trouble getting a good manager. There are a huge number of professional property managers who aren’t worth a cup of wrm spit, and unfortunately it can be hard to tell about the manager until you see how they handle trouble.