Photo by Breno Assis on Unsplash
5 Reasons To Sell Your Investment Property
1. Your Property Is Worth More Than When You Bought It
Sometimes investors go on “auto-pilot” and may not be aware of the gain in value and equity in their rental properties. Since the goal of investing is to make money, consider yourself a winner if your property is worth more than it was when you bought it.
If you’re one of the many investors that bought real estate during the Housing Crisis, contact a reputable agent to do a comparative marketing analysis to figure out what your property is worth now. You may be very pleasantly surprised!
👇 CLICK HERE to find your Property’s VALUE
2. Negative Cash Flow
On the other side of real estate investing, sometimes the cost of your property exceeds the income brought in. Hoping that things change in the future and emotional attachment can cause investors to freeze up, but it’s best to sell a negative cash flow property sooner than later. Unless there are absolute sure signs of rental prices to appreciate, you shouldn’t speculate that things will change for the better in the future.
3. It’s A Strong Sellers Market
As we already mentioned, inventory levels have been low across the country recently. When you combine that with currently low interest rates from mortgage lenders and willing buyers, you have a great selling market.
4. The Property No Longer Fits Your Plans
You should always have a plan as a real estate investor. Maybe your goal was to have sold more properties by now, you’re ready for retirement and don’t want to be a landlord anymore, or you’re sick of having “working vacations” when you take time off work to do maintenance on your vacation rental. Maybe a child or grandchild could use some financial help to get through school? There are many reasons, each very personal and unique to your situation, to consider selling an investment property.
5. You’re In A Good Situation With Capital Gains Tax
Always seek advice from your tax consultant and real estate agents that are well versed in topics like 1031 exchanges and capital gains tax when you’re seriously considering selling. If you’re able to sell your property without owing much on capital gains tax, then you’re in a great position.
Are any of these 5 Reasons hitting home with you? If they are, let’s talk and see if selling your investment property makes sense for you.