Many landlords hold property as an addition to their full-time jobs. If these properties run themselves and constantly produce positive cash flow then consider yourselves among the lucky and fortunate. So often it seems sexy and is a topic to talk to your friends about when you own "investment properties". If one or more aspects are not going well it may be time to unload that property.
1. PROBLEM TENANTS Too many phone calls to you, not treating your property well, and issues collecting rent are big headaches. 2. NEGATIVE CASH FLOW Your monthly income is less than your mortgage payments, tax bills, repairs, and utilities. It's probably time to make a change. 3. REPAIRS ARE MOUNTING Maybe your tenants haven't treated your property well. Maybe the house is old and just hasn't been updated in a long time. The longer these repairs go unfixed, the more likely you'll have problems with your tenants and finding new ones to replace them. 4. YOU'RE BETTER OFF USING YOUR MONEY SOMEWHERE ELSE Even if you're making a modest return on your rental, maybe that money is better used somewhere else. Other investments could be more passive and offer the same return or better. If your main expertise is outside of real estate there might be investments you can consider using your particular skill set. 5. YOU ALWAYS PLANNED TO SELL Did you become a "landlord by mistake"? Maybe you couldn't sell your former primary residence after moving to a new house, maybe you inherited a house, or maybe you've already gained significant appreciation since you acquired the house. It might be a good time to simplify and sell the rental now.
1 Comment
Sure, you've seen ads from investors looking to buy houses directly before. Many tout similar reasons why you should sell your house to them--they buy with cash, close quickly, and will take your property "as is" to name a few. Investors can offer a lot of advantages during the home sale process that traditional sales can't. Because many home buyers have relationships with lenders or use their own cash they can waive this contingency along with so many others because of their experience in dealing with houses that need some element of renovation. Of course, just as if you'd interview multiple Realtors before choosing one to list your house, you'll want to carefully select the investor/buyer of your home to work with too.
Ask the investor, "are you actually the person/company closing on this house?" Many investors will put a house under contract with an option to be able to transfer that contract to someone else for more than you agreed to sell the house for. This often leads to delays and in many cases deals fall apart because the buyer/investor didn't intend to close on the house unless he/she could assign it to someone else for a profit. If you get a bad feeling from someone you're meeting with, move on. Usually your intuition is correct. Work with an investor who treats you with respect and listens to what's important to you. |
AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
Categories |
*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
|