CAP rates | What you need to look for when renting your house

Disclaimer: this is NOT exactly how CAP rates work! However, this is a simple framework that you can use when considering renting your home vs selling it.
I get it, you have a big gain on your property and you can rent it for more than the mortgage (and your mortgage is at a low rate!), but that doesn't mean it's a good use of capital.
In this video, I cover how to think about rental income and your home, when you should consider selling and reinvesting vs renting, and what a good CAP rate target is.
Chris Kaminski, CFP®, RICP®, ChFC®, CLU®, CLTC®
Forbes Best-In-State Top Next-Gen Wealth Advisor 2023
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Disclosure:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
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[@alexanderdorell7701]

Interesting, thanks for sharing!

[@ConsilioWealth]

You bet! Thanks for watching!

[@jpdennis1136]

This is really great advice! It is easy to convert an old primary to a rental especially amidst a higher rate environment, but with a little bit of work the proceeds from the sale can yield a much higher rental return elsewhere. BUT it is a lot of work upfront to source good deals and deal with the sale and purchase of another (or multiple) homes.

[@ConsilioWealth]

Thank you! Glad this was helpful!