Should I sell my rental property? Most investors that acquire rental properties want to be landlords in order to have passive income as well as collect equity on an asset they can later sell. There are several reasons why an investor might want to sell their investment, even if the mortgage hasn’t yet been paid off with tenants’ rent payments. Below you will find nine motivations for an investor to sell his/her property, as well as reasons why selling property sooner rather than later might be beneficial.
9 Reasons You Might Consider Selling Your Rental Property
The real estate market in Houston is hot!
- It’s a seller’s market and a good time to sell.
- Being a landlord can come with a lot of hassle. Maintenance, irresponsible tenants, and even responsible tenants can cause headaches.
- Being a landlord can take up free time on weekends for repairs and maintenance, especially if you have a day time job.
- …Late night phone calls. Need I say more?
- Paying property management company, while helpful, can also become costly.
- If you have a multi-family unit, you may have to help manage tenants’ relationships with each other.
- Being a landlord means worrying about how well tenant will maintain the home.
- Having to keep track of payments, late payments, and enforcing late fees.
- You might need to liquidate your asset for another purchase (i.e., child’s college).
Right now in Houston, there is a low inventory, meaning there are not that many houses to buy.
This means several things for sellers:
- Prices are still rising, and will continue to rise until the inventory increase, which could take 2-3 years or even more
- Buyers know that prices are continuing to go up, and mortgage rates are still low, so buyers are likely to continue to buy
- It’s a sellers market with the low inventory and high demand. So yes – you can hold on to the property and see if it increases in value. BUT, what if mortgage rates go up (which they are predicted to do)?
Anything can happen in a hot market. If you are thinking about selling, do it now in a seller’s market with high demand and low inventory before mortgage loan rates go up.
So, if you’re an investor that wants to sell a rental property, now what? If you have enough equity in the house, fixing, staging and selling the house on the traditional open market would most likely yield the best return. However, selling the property to another investor, such as Big State Home Buyers, would allow you to sell the property in as little as three weeks with cash-in-hand and no repairs necessary. Click here to find out more about whether or not you should sell your house to an investor.
If you have decided that you would like to sell your property to another investor for cash, check out our tips on how to sell to an investor.