Determining whether you should rent or sell the house you are renovating should largely be based on the location of the property itself. If the property you are looking at is located in a stable neighborhood where there are few, if any, renters, then selling is likely the best course of action.

The converse is also true. If the property is in a neighborhood, which is still considered to be in transition, you may want to consider renting. Investing in these areas is considered real estate speculation. You are somewhat betting on the area's potential and banking that in the near future, it will be a place where more people will eventually begin buying to live.

In these neighborhoods, it is beneficial to rent after your refurbishing is completed. You will rarely go wrong by holding onto the property for three to five years - or more, until redevelopment takes hold. When it does, property values have a tendency to increase and your investment could pay off even more handsomely in the long run.

Mortgage loan expert Chris "Cash" Calloway, President of Calloway Mortgage says if you are worried about whether choosing to rent rather than sell might affect your use of a hard money loan in acquiring and renovating your property, don't. The mortgage lenders generally recognize this sort of speculation. Also, once the work on your property is completed, you will generally qualify to apply for a conventional mortgage loan at a lower interest rate and will be able to repay the hard money loan. The rental income you will receive from the property should more than cover your loan.

It's important to know from the very beginning of your commitment to invest in a property which course of action you will be taking. The rent vs. sell decision will likely affect the amount of money you will need to borrow because it plays a role in determining the types of the materials and work that will be done on the property during the renovations. If you are new to real estate investment and would like guidance in completing your first deal Christopher Calloway recommends Cash Money Homebuyers as an experienced team of real estate investment professionals who will walk you through the process.