Selling your rental property can sometimes be a harder decision than selling a house you live in. Here are some reasons you might want to sell your investment property.
There is no doubt that rental properties can offer a steady source of income. Finding responsible tenants who look after the upkeep of the house and pay on time make it worth the trouble. However, not everybody is that lucky and those that are in luck inevitably reach a point when they need to sell the property. Here are times when you should consider selling your rental property.
Failure to find the right tenants
A rental property that remains vacant is only costing you marketing and upkeep costs. You should definitely consider selling if you are having a hard time finding good tenants. You will probably want to consider cutting rent to a point that attracts tenants but may attract bad tenants in the process. You may use the cash generated by the sale to invest in a more profitable rental property later.
Maximized capital value gains
Another time you should consider selling your rental property is when its value has significantly appreciated over time. If you purchased the property during the great recession, it will have potentially doubled in value by now. A property bought up to ten years ago would have seen capital appreciation of nearly 20%. You could make the most of this value appreciation by cashing out and investing in another rental property.
Diversifying your portfolio
You may want to consider diversifying your portfolio if your rental properties exist in the same market or your cash is tied up in rental properties only. You may cash out in this case and use the cash to diversify your portfolio. This is equally useful if you wish to start a business and require funds to finance your new venture.
Do not hesitate to offload your rental property if it is no longer worth the trouble and use the cash generated from the sale as you please. You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
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