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To sell or not to sell

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InvestJ | 11 Nov 2014, 09:19 AM Agree 0
How do you know when it’s time to sell? I’ve had a second property for the last seven years and it’s completely renovated. We have tenants who currently reside in the house, but we’ve had to do a fair bit of maintenance to keep the standard of the house as is, and to be honest, it’s a little exhausting. However, the rent is $2000 a month, more than enough to cover expenses and save a little extra for retirement. I’m stumped. What’s the best option?
  • S.Swaich | 11 Nov 2014, 12:21 PM Agree 0

    I have 3 rules when considering to sell any real-estate holdings and these are the 3 circumstances which will trigger a sell.

    1. I need the cash

    2. I see a better opportunity elsewhere, this may be an opportunity to buy another property with potentially more upside or another form of investment

    3. There are noticeable market factors indicating a potential decrease in the area - this is a more broad scenario and requires due diligence on your end

    In your position it seems you're exhausted with the maintenance and it may be an opportunity for you to look at potential properties with lower maintenance and compare the difference in potential return on your investment. It may be a lower return but with the reduced hassle it may be worth your while - but selling prior to doing the homework won't do you any good.

    Good luck!
  • InvestJ | 11 Nov 2014, 02:09 PM Agree 0
    If I decide to sell, how much time do I have to notify my tenants? Do I have to wait for the lease to expire first or is there a way to get around that?
  • Hans | 19 Dec 2014, 06:31 AM Agree 0
    My experience in selling a rental house was advising the tenants by letter that the home was up for sale and that their lease would continue and it was up to the new investor and them at renewal time to decide if any changes would be made . I also asked for their patience and cooperation at reasonable showing times with qualified buyers . We had no problems selling the house and I believe that the same tenants still rent there 2 years later.
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