Wondering if selling your investment property in Madison is the right choice? In this post, we explain simply how to know if it’s time to sell – as well as the options and resources so that you can make the best choice. Check out http://www.landlord.com/ for more resources to help you with being a landlord.
Little or No Cash Flow
Investment properties always have their ups and downs. It’s part of being a landlord. But if you’re only getting a little bit of cash flow, each month, or worse, if it is negative, it could be time to sell. Look for patterns. If this is not a regular occurrence, it might be best to hold on through the slow period. But if you are consistently seeing little or negative cash flow, or if you are having trouble retaining high-quality tenants, it might be best to cut your losses and walk away. Nowhere does it say that you need to hold on to your rental property forever – in fact, every investor needs an exit strategy. There are better investments out there, and using the cash from your under performing rental is a great way to change your situation.
Difficulties In Distance
Being a remote landlord can work for some people. But paying 12-15% of rent to a property manager is expensive – plus taking care of the property can be next to impossible. Or worse yet, if you don’t pay a property manager and fail to take care of items such as furnaces, fireplaces, or other gas appliances which can lead to serious safety issues. These items should be regularly checked at least once per year. Property showings, tenant screenings, checking on the property, and building a relationship with your tenants can be difficult when you aren’t located nearby. Some situations work for landlords without the use of a property manager. Many times, these relationships are possible because the landlord and the tenant knew each other previously or through a friend.
The Value Has Jumped Significantly
If you are able to resell the house for a substantial profit, it might be in your best interest to do so. While you could be collecting rent each month, slowly profiting over time, there aren’t any guarantees you will be able to retain high-quality tenants for the long-term. Many folks run into vacancy issues, or the rent prices in your area may fall, and the overall value may drop before you decide to resell down the road. If you have the opportunity to resell the property at a significant profit, it is something you will definitely want to consider.
Maintenance Costs Are Rising
As the house gets older, it will likely cost more to maintain it. When your profits diminish and your repair bills grow, you need to ask yourself if this pattern will continue. Having to fix one thing after another can be extremely costly and frustrating. Not only can the maintenance get expensive, but the time and stress caused can be overwhelming for Madison investment property owners. Your investment should be a sense of pride and generate income for you and your family. Property in any other state may be more trouble than its worth and a great candidate for a resell.
Do you own an investment property in the Madison area that you wish to sell? Let’s work together to run the numbers! Find out if you should keep the property, sell it directly, or hire an agent to help you! You have options when selling your Madison investment property, and we are here to help!