Knowing when the time has come to take a step back and put some serious thought into moving on from an investment property is a good skill to have. In this article, I will detail how to determine just that.
Too often than not, investors cling to a property that is costing them money. If a property has certain issue it might make sense to move on from the investment. Not to say that it doesn’t’ make sense to hold on to the property in a lot of situations. Keep reading to find out some of the signs that it might be time to move on.
Consistently Bad Experiences With Renters
Often times when you consistently run into the same problem there are clear reasons why those problems seem to regenerate. If great tenants seem to be nonexistent in your world, one of two factors are probably contributing to that. You could be in an undesirable area or the property itself could lacking in quality. Both, can cause higher turnover and lower quality renters. If are mentally exhausted from dealing with those issues it might be time to consider moving on and selling your investment
Where is the Profit?
If you are not seeing a profit right away on your investment property, I am not saying to go ahead and give up and sell. A turn in the market could be right around the corner. Sometimes it make sense to wait it out and for future profits.
Selling off should not be done unless you have tried everything in the book to solve your problem. It would not be smart to just sit around and assume that the situation will correct itself. Be proactive and innovative to ensure that your property is doing the best it can in showing you a good return.
Is There Something Better Out There?
Are you seeing a lot better deals pass you by while you are stuck with a property that has not been good to you financially. Do not allow yourself to miss out on profits because your money it tied up in a non-performing asset. It might be time to consider selling the property if you are consistently seeing better options.
I am not recommending jumping ship just because you see a couple slightly better deals. There needs to be a legitimate opportunity for you to see much better returns with the new investment property. Real estate markets take swings just like the NASDAQ and NYSE. Do your homework and take action if you feel that it is appropriate to sell based on substantive facts not feelings.
Could the Value Be Increased?
Could a few simple improvements have a positive effect on the value of the property? Have you raised your rent relative to the market rates? Make sure you take a careful look at those questions to make sure you get the most out of your investment property. You could be missing out on value that you do not see today, take the time to do your research and make educated decisions.