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How to Know When to Sell Your Rental Properties

Why do Landlords Sell?

Just Sold! Triplex in Hyde Park

Rental investors decide to sell their properties for a number of reasons! From strategic financial changes to personal convenience, the reason to sell investment properties will vary from landlord to landlord and through different seasons of life.

If you own rental properties and wonder why or when you should consider selling, check out Ellen’s insights into reasons landlords sell!

Reasons to Sell Your Rental Properties

For Convenience

Sometimes property owners decide they just don’t want to be landlords anymore. They may have experienced a significant life change or perhaps their rental properties are now located too remotely from where the landlord now lives. Many times wise landlords who are still receiving positive cash flow from rentals will hire third party professional property management; this way they can avoid the hassle of dealing with renters while still receiving passive income. However, if a landlord doesn’t want to pay for a property management service, they may decide to sell the property.

At times, a long term tenant will move out leaving the landlord with two options: renovate himself and rent out again, or sell and leave the extensive upgrades for the next owner to customize.

Other real estate investors have decided to retire and travel or to spend more time with family; with a higher priority on time instead of money, these landlords may choose to sell rather than continue to invest time and energy into their properties.

For Coin

Several rental investors decide to sell their properties as a smart financial move. Landlords can take advantage of certain tax codes by selling one property and purchasing another. Keeping in mind certain restrictions, savvy sellers can use IRC Section 1031 to their advantage and temporarily avoid capital gains taxes on their rental properties.

Other landlords decide to sell when the loan term they hold on the house is coming to an end. These real estate investors may have borrowed money for five or ten years; at the end of the loan term, these landlords will need to decide whether to sell or to refinance. It is important that a landlord consult with their accountant for any tax information before making a decision.

For Compelling Market Conditions

When the market conditions are strong, rental investors may take advantage of the profitable timing. High demand in the housing market means higher prices for sellers. Landlords looking to sell within the next five to ten years may not want to wait for the cycle to come full circle and offer favorable prices again. It would be better to sell during current productive circumstances than to weather years of uncertain profits hoping for another chance to come round again.

Housing Market is Hot Now!

The real estate industry in Kansas City is booming. With a high demand for homes, the timing couldn’t be better to divest yourself of your investment properties. If you plan on selling your rentals within the next couple of years, you should do so now! And remember you can sell while the property is still leased!

Take full advantage of the hot market and get the best price for your investment now! With Ellen Zetmeir on your team, you can sell your properties at top dollar and within a short amount of time!

Crisp and Clean Remodel of Triplex

In fact, just recently Ellen sold a triplex property in Hyde Park. The seller decided to make some changes in the real estate industry, and with Ellen’s help, a lucky new owner jumped on the investment opportunity. Read more about the Triplex property that just sold from Ellen’s blog!

Success can be yours too! Don’t wait for the market to potentially circle back; it’s the most profitable now! Contact Ellen today to see about divesting of some of your rental properties for a big profit!