Property owners retain their investment properties even when they are draining in debts. There is no law saying you should not sell your property! In this new post, we highlight red flags that help determine when to sell your investment property.
- WHEN THE RETURNS AREN’T THERE
How much is the property bringing in annually? Not just month to month, by over the course of a whole year? Make an overview of your annual income and apply the 1% rule which allows you charge 1% of the cost of your property every month in rent. If after calculating the cost of repairs, maintenance, vacancies, annual income, and the returns are low, you might want to consider selling your investment property.
- IT BECOMES A FULL TIME JOB
Many people who get into real estate investing have vibrant and full lives that also require their attention. Working full time on your investment property is perfectly okay. Alas, if you aren’t prepared to go through the workload and time consumption that comes with operating your property, you might want to consider selling. Owning investment property should add to your life by providing financial freedom. Not end up costing you all of your free-time.
- TENANT ISSUES
Have you ever thought of the reason you’ve always had bad tenants? There is likely a reason why they are attracted to your property. Perhaps the house is in a bad neighborhood, or there is a defect in the housekeeping you from charging a higher rent, which would hopefully weed out some of the bad tenants. If it’s the location, it might be time to sell and reinvest in a better area. If it is the house’s condition, you can remodel or opt to start again with a new property in the area.
- YOU AREN’T EXCITED ABOUT YOUR PROPERTY
When you think about the property you own, you get a knot in your stomach. It might bring in the returns, but there is always something you have to deal with. Whether it be repairs or needy tenants. Sometimes, properties come with lots of hurdle, leaving you unexcited and hating the property you own. This usually comes up through inheritance and can be dreadful. To prevent damages on the long run, why not get a quick and satisfactory sale on the property.
When you hold on to an inherited property because you feel like you have to, it can end up costing you a lot of money in the long run.
- YOUR MONEY WOULD DO BETTER ELSEWHERE
There are all kinds of ways to invest your money. Never place your money in bad investments! Keep your options open and have your money in the best possible investments. Would it be better to buy one investment in California or 5 in Wyoming? Is there an incredible deal on a commercial property that is fully rented out with long-term tenants? Don’t miss out on something big because your money is tied up in a bad investment property!
- YOU HAVE OPTIONS
Have you decided to sell your property but clueless on how to go about the process? Get across to us on how we can help liquidate your property.