When to Know it’s Time to Sell an Investment Property

Smart real estate investors know when it’s time to buy and when it’s time to sell. We’re not talking about quick flips here, but buy and hold properties. Whether you’ve been renting out the house, letting a family member live there or just holding onto it for the equity, there will come a time when it makes sense to sell it and move onto your next venture.

In this article, we will explore some different scenarios where it makes sense to sell your investment property and move on.

Underperforming Investment

This is the most common reason to sell. The investment just hasn’t performed the way you wanted. The market flattened out or dropped and you have an investment property you just don’t want anymore. Maybe the upkeep and ownership expenses are starting to outweigh the earnings. Perhaps the equity isn’t what you expected. You might be having a hard time finding and keeping tenants. Whatever the reason, it’s a losing investment and you want to sell it and move on.

Hot Market

The opposite scenario can be true. Maybe the market is seeing a sharp spike in value, but you aren’t sure how long that will last. You know from experience that the bubble will eventually burst, so you might as well get as much value out of the property as you can while the market is hot. Cash out on your equity and apply that toward a new investment with even more growth potential.

Expenses Getting Too High

We all know it costs a lot to buy and hold an investment property. You have property taxes, insurance, maintenance costs, HOA dues, upgrades that need to be made and, in some cases, property management fees. These expenses add up and they will generally go up as time goes on. Eventually, there may come a point where the expenses are just too much and the investment is not worth it. Even if the property is performing well, you may want to sell before the expenses get out of hand and you eventually find yourself upside down.

Not Enough Time

Expenses can add up, and so can the time commitment. Even if you are working with a property management company to handle the day-to-day, any real estate investment you own will require a chunk of your time and some investments need more attention than others. If you find yourself short on time to keep up with all of your investment properties, it may be smart to sell one and make sure you are not spreading yourself too thin.

Time to Move On

Sometimes, it’s just time to move on to something different. As investors, we tend to get bored and we all want to move onto the next bigger and better things as we expand and grow our investment portfolios. The property has been good for you, but it’s no longer one you are passionate about. It makes sense to sell it and find something else that will keep you motivated and moving upward as an investor.

Market Changes

We should always be aiming to grow as real estate investors. You may have done really well in one market, but you have decided to move to a new market. Maybe you’ve honed your skills in a low-end market. Now, you want to apply those skills in a higher-end neighborhood. You might want to trade quantity for quality by owning fewer higher-yield investment properties compared to having to manage a bunch of low-yield investments. The other scenario is you have moved yourself and no longer want to deal with those properties outside your new primary market. Whatever the reasons, you have decided to change your market focus. That means you’ll want to sell in the market you are leaving so you have the capital and time to move onward and upward.

As you can see, there are numerous scenarios where it makes sense to sell off your investment property. The question then becomes how you go about selling. Do you get it ready to put on the open market and go through that lengthy and complex sales process, or do you sell it quickly to another cash investor?

If you are looking for a fast, easy and private cash sale, PropertyLark is here to help. We’ll get you a fair market offer within 24 hours of your request and we can close the deal in as few as 7 days (or whatever closing date you wish to set). Just fill out the form on any page of this website to get your no-obligation cash offer from PropertyLark.