# Sell my home or rent it?



## Calvinl (Sep 29, 2011)

Hello, new guy here. I have enjoyed lurking here, and now i have some questions and need some opinions.

A little background. Location Winnipeg. Assets. I own two homes free and clear. home #1 is my principal residence, great area, homes on my block are selling fast, over list price. Neighbor last year with a similar home to mine listed at 269k and had 6 offers over, selling for 320k.

House #2 is my rental duplex potential for third suite, good rental area as long as you properly screen tenants. Main floor suite just vacated cleaned and painted ready to go. Similar homes on street selling around 160k - 200k.

My only liabilities are 20k line of credit. Self employed in trades.

As much as i love my current home i have been here 20 years and feel its time to move on, with the intention of expanding my real estate holdings.
I am thinking of moving into my rental and either selling or renting my primary residence and then buying another project house.
My income has been low for 2 years and being self employed i worry i will not get financing on another project house so i should sell. On the other hand i can get top dollar renting my primary and moving into the rental would improve cash flow, and i can finish up the third suite, but its still rental income and i am self employed so financing could still be a problem and i dont want to be stuck in my rental. I was thinking move to the rental and start looking for my next project and be out of my duplex in a year or less. 

I have agents# lined up plan to talk to my bank and mortgage brokers but thought i could get some feedback from here first. So my main question is should i sell or rent my primary residence and can i get financing for a another house if i do not sell .


----------



## Cal (Jun 17, 2009)

I am sure a mortgage broker will be able to tell you able your potential financing options. Whether you rent or sell the primary residence that is your decision, as you havne't provided much additional info regarding other investments. If you don't have any, I would sell and diversify some of your holdings.

Second, as I was reading, I am aware that if you live in a rental property, you and rent out another portion, there may be tax limitations that you should discuss with an accountant. I know how it would work tax wise for a SFH or duplex (in that you can only claim a max of 50% of your interest, expenses and such), but not sure on the rules regarding a triplex.


----------



## Calvinl (Sep 29, 2011)

Thanks for the reply. Yes i do have some other small investments but for sure the majority of my portfolio is in the real estate. The reason i do not diversify more is that i am familiar with real estate and comfortable with it. I can walk into a house and see what it needs and its potential or lack of.I have the skills and contacts to do the work in a timely manner, and i like to manage my own properties.
I have friends and family that have taken a beating on their portfolios of stocks and whatnot now they sit on cash waiting for signs of stability. They have lost confidence in the markets and the people they paid for advice. I do not feel confident i can diversify if i do not understand the product, so i do what i know physical real estate. 

I realize that the decision to sell or not is mine and that only i can make that decision. When i talk with my brokers and accountant i will get a clearer picture and make a decision. 
I think my uncertainty is caused a little by the desire to time the market and thats not really possible or productive. I have been thinking that a small correction or at a minimum the end of ridiculous multiple over offers would slow down the market and that has not happened locally, it may but when 6 months two years? reading old posts on this forum shows a lot of people trying to time the market and failing.
My thinking was to possibly list the house now while the market is strong if i get top dollar sell, if not rent it out and build cash flow and use it as leverage. Moving to the duplex allows me to not be rushed in my next purchase and allows me to empty my primary residence and do repairs and stage it. I used to laugh at how some people stressed out about the decision to sell a house, and i have sold some in the past no worries, now for some reason i am stressing out about it.


----------

