Wondering when to sell a rental property? Even the best rental properties can eventually become more burden than boon. If you’ve spent any time over the past few months wondering if your own rental property has crossed that threshold, we’ve identified four signs that it’s time to sell your investment property and begin a new adventure. HomeGo can make that adventure a reality, and fast!
You didn’t become a landlord for the glory and exciting lifestyle. You became a landlord in order to generate income. It’s a numbers game. Earn more than you spend and you’re winning. Spend more than you earn and you’re losing.
Admitting it’s time to sell your investment property fast can be difficult. It can feel like a greater defeat than being in the red each month. But there’s a simple question to ask yourself that removes all emotion from the equation. As The Washington Post puts it:
The test for you is to think about whether you’d buy the investment now. … Investors have a tendency to keep bad assets for too long, hoping that they’ll turn around. But if you wouldn’t buy this investment today, then you should dump it.
Now factor in capital gain taxes (which can reach about 22% of the selling price), the prospect of making any necessary repairs, and staring at a negative cash flow for who knows how much longer. After all that, you might discover that your balance sheet has made the decision for you.
Did you hear the one about the landlord, the tenant involved in hard-core drugs, and a raid by the FBI? Or how about the cat lady who moved out without notice but left her cats behind — and unattended — for three weeks?
The horror stories go on. If you’ve been a landlord long enough, you have plenty of your own.
Landlord aggravations aren’t limited to tenants, of course. There are maintenance issues to fret over, fluctuating values, even natural disasters such as earthquakes and floods. If the stress isn’t equal to the revenue, it might just be time to wave goodbye.
After years of enjoying being a landlord, that’s where one HomeGo customer found herself.
“It was fun for a while…but I did want to get rid of it quickly in as-is condition. You guys came back fast. Then you set the appointment to come out to the house and the agent I talked to was very good. He wanted to help me sell the place quickly, without having to make repairs, and get a good price for it.”
This isn’t your first rodeo with rental properties and troublesome tenants. Even if your numbers are currently good, you understand they won’t always look good. Seller’s markets have a shelf life, after all. Millennials driving today’s hot markets will eventually cool off a bit. Job growth in your area may already be teetering on the edge of a bad fall.
As Kenny Rogers explained, you’ve got to know when to hold ‘em and know when to fold ‘em. If you’re wondering when you should sell your rental property, even the Gambler would agree that cashing out of your rental property during the most profitable seller’s market since 2007 is as good a time as any.
Sometimes, something new comes along and you simply feel it’s time to move on. Nothing about bad tenants, bothersome maintenance, or anything of the sort. Maybe your eBay store is turning a nice profit, or your stock investments are performing well.
There’s another possibility, as well. Selling a rental property can include a fair amount of downsides: repairs, dealing with a steady stream of potential buyers (or just “lookie-loos”), and similar irritations. Do you have the time or stamina to deal with it all?
One HomeGo customer didn’t, which is why he sold his rental properties the easy way.
“My health had taken a turn for the worse. I lost my kidneys and bladder. We actually had two other homes as well. I sold all three of them because I just didn’t have the wherewithal to continue to try to take care of my own properties. HomeGo appealed to me mainly because of my health. My health went really quickly, and I didn’t know if I was going to recover or not. I didn’t feel like I could leave my wife saddled with the rent houses. I needed a quick turnaround.”
HomeGo flips the script, making it easy for you to sell your rental property without investing in costly repairs, paying out a hefty chunk of your profit to a real estate agent, or setting aside time from your busy life. It’s all done with an easy three-step process — submit your address, meet with HomeGo, and move when you want — is the best choice for landlords who want convenience, simplicity, and a 100% stress-free home sale.
It’s the 21st century. Many things have changed, including how to sell a rental property. HomeGo can guide you along the way. There’s no obligation, no service fees, and no fuss.
If you think you might be ready to wave goodbye to your rental property, connect with us today!