The purpose of buying a rental property is to maximize your profit and grow your financial portfolio. Many people view owning real estate as a long game, but there is a risk in holding onto investment real estate for too long. There are some signs to look out for that signal it is time to consider a rental property sale.
If you experience one of these four situations, then it is time to contact local cash home buyers in Portland.
1. Increased Property Value
The goal of buying an investment property is to have it increase in value. Using investment property as a rental generates passive monthly income while waiting for the property to appreciate. A day will come when the property value increases and you have the opportunity to make a decent return on your investment. This is the time to sell and get the cash out of your investment property. You can then take this money and invest in the next property.
2. You Can’t Afford It
A negative cash flow is not what you want with your rental property. This could happen through no fault of your own. Perhaps the taxes, utilities, and insurance have increased to the point of making them cost-prohibitive. Or the rental market rates have dropped to make it hard to make a profit. The cost of the maintenance could become more than what you could afford.
3. You Are Ready to Move On
Naturally, sellers must pay any taxes still due on the property in full before the title transfers, Owning rental properties and being a landlord worked great for you, but now your heart isn’t in it anymore. You are ready to move on to other opportunities. This could be a hobby that you want to turn into a business or a side gig that is grown into a viable business. Selling your rental properties gives you the capital you need to move on or upgrade to a bigger investment. Selling to local home buyers in Portland can make the sale process quick and simple, allowing you to move on at your own pace.
4. Better Investment Opportunities
You bought the rental property to grow your wealth and increase the value of your investment portfolio. The monthly rental income represents a positive cash flow while you wait for the property to appreciate in value. However, the real estate market changes with ups and downs. If you leave your money totally invested in real estate, you could miss out on great investment opportunities in other sectors. The smartest investors diversify their portfolio, and you could too, by selling some of your rental properties and investing the proceeds elsewhere.
It Is Time For a Rental Property Sale
If any of these situations sound all too familiar to you, then it is time to consider selling your rental property. Life is unpredictable, so you need to know when to sell to make the most of your real estate investment. Shona Buys Houses can help you pivot your real estate investment strategy quickly to maximize your returns. all Shona Buys Houses at (503) 389-3122 or send us a message to learn more.