Could It Be Time To Sell My Income Property?

Could It Be Time To Sell My Income Property?

Could it be time to sell my income property? Every property owner’s situation is unique. There are some common scenarios that can signal it’s time to consider selling a rental property. Hi, I’m Rich Barnes, owner, broker of Realty Experts in West Allis, Wisconsin, 53214. The property needs extensive work. It’s easy to keep rolling with a rental property when everything is stable and the money is flowing in just one direction, toward you. But if the roof is ready to be replaced, the HVAC system is on its last legs, or the flooring is woefully outdated, and if you’re unlikely to see a return on a major investment, it might be wise to cash out. Your age might also be a factor in this decision. If you’re close to retirement, it might not be a smart financial decision to invest another $200,000 into a rental home, when the return on the investment would take years to materialize. The neighborhood is starting to deteriorate. If you’ve noticed that the area surrounding your rental property is starting to go downhill. For instance, if crime is on the rise, the condition of other buildings is beginning to decline and that can cause rents to become lower, which could impact your profitability. You have non-paying tenants. Although, this may not be a deal breaker for all owners, some may not want to deal with the headache of addressing non-paying tenants. The property is losing or gaining value. Depreciation is another sign that it might be time to explore selling. But on the other hand, if your rental property has significantly increased in value, you may want to cash out to liquidate the equity and use it to make a new investment or do a like-kind 1031 exchange. Ultimately, every investor and every property is different. If you have questions on rental properties, we are your local income property specialists. And as always, you can rely on rich.com Thanks. And you have a great day.

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