Are you thinking it’s time to sell your investment property in San Antonio? Investment properties can be good, but you also need to know the signs that it’s time to sell your investment property and move on. In our latest post, we offer ways to know it’s time to sell as well as the options available to you!
While owning real estate is a great way to generate extra income, not every property is going to be profitable. Many investors hold on to properties far longer than they should, completely negating any profits they had made in the past. If your investment property isn’t performing as you would like to, maybe it’s time you consider selling it for something else! Keep reading to learn more about our 5 signs its time to sell your investment property in San Antonio.
Negative Cash Flow
Investment property profits will always have their ups and downs. It’s part of owning them and being a landlord. Look for a pattern and if you consistently have negative cash flow then your investment has become a liability.
Are you are having trouble retaining high-quality tenants, have rents not been able to keep up with increased expenses, or have vacancies wiped out all your profits? It might be best to cut your losses and walk away. There are ways to save money when you sell your rental property.
Nowhere does it say that you need to hold on to your rental property forever. Just make the best financial decision for you. There are better investments out there, and using the cash from your underperforming rental is a great way to change your situation.
Difficulties In Distance
Being a remote landlord can work for some people. But in many cases, paying a property manager becomes expensive, and trying to handle things on your own can be next to impossible. Property showings, tenant screenings, checking on the property, and building a relationship with your tenants can be difficult when you aren’t located nearby.
No one will keep an eye on your investment as well as you would and it is really difficult to keep an eye on your property from a distance. Has your property become more difficult to manage from a distance? Are you unsure about want is going on with repairs and general upkeep? Is this property still providing the positive results that you had imagined?
The Value Has Increased Over Time
If you have owned the house for a long time or the values have recently increased, it might be in your best interest to sell the property. 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. You may run into vacancy issues, the rent prices in your area may fall, and the overall value may drop before you decide to resell down the road.
You also have to factor in that if you are making $300 per month in profit but you could sell the property and receive $30,000 cash right now, selling might be a better decision. It will take you 100 months (or 8.3 years…) to get $30,000 at $300 per month and that is if everything goes right and you have no vacancies. If you have the opportunity to resell the property for a 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. As you see 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 San Antonio investment property owners.
Maintenance costs can kill your profits on investment properties. It is vital to consider your total maintenance and repair costs when your tenants are leaving because this is when many major repairs need to be done. It is often better to sell the property as-is instead of putting a bunch of money into the property only to sell it or rent it out again.
Tired of Being A Landlord
Are you just tired of being a landlord? There is nothing wrong with that! We buy houses from landlords all the time that have either decided that being a landlord is not for them or they have been doing it for a while and are just ready to move on.
Nothing says that just because you have an investment property you have to keep it as an investment property. If you would be happier just to move on and spend your time doing other things, then it is a big sign that it is time to sell your investment property.
Do you own an investment property in the San Antonio 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 to us, or hire an agent to help you! You have options when selling your San Antonio investment property, and we are happy to help!