Do you need to sell your investment property in Hemet, California? In our latest post, we identify some ways to know it’s time to sell your property in California. Investment Properties are great ways to build wealth, but sometimes they can be too much to manage.
While owning real estate is one of the best ways 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. One reason is that most people don’t maintain their properties regularly or tenants just don’t respect your property the same way you would. 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 4 signs its time to sell your investment property in Hemet, California.
Negative Cash Flow
Investment properties will always have their ups and downs. It’s part of being a landlord in Hemet, California or anywhere in Riverside County. Look for patterns. If this is a regular occurrence, it might be best to hold on through the slow period. But if you are consistently seeing negative cash flow or if you are having trouble retaining high-quality tenants, it might be best to cut your losses and walk away. Nowhere does it say that you need to hold on to your rental property forever. There are better investments out there, and using the cash from your underperforming rental is a great way to change your situation. One reason selling to another investor can be a very good option is they can typically buy it with the tenants still occupying the property, making the process much quicker and easier. Typically, Investors like Stars and Stripes Real Estate can take over your tenants and and take over your headaches for a fair cash offer and close in 7 days.
Difficulties In Distance
Being a remote landlord can work for some people. But in some cases, paying a property manager can be expensive and handling 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. Only in some situations are a landlord and tenant able to live far away without the use of a property manager. Many times, these relationships are possible because the landlord and the tenant knew each other previously or through a friend. Another problem with distance between your property and where you live is the fact you truly don’t know what the condition is. Tenants aren’t homeowners and that ends up becoming. very evident when it comes the how well they maintain the property. From tenants slowly destroying properties by lack of maintenance and negligence to just normal wear and tear, distance is almost always a problem when it comes to investment properties.
The Value Has Jumped Significantly
If you are able to resell the house for a substantial profit, it might be in your best interest to do so. 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. If you have the opportunity to resell the property at a significant profit, it is something you will definitely want to consider. Recently home values in Hemet, California have increased significantly, but there is no promise this will continue. If you think it may be time to cash in on your extra equity and stop managing an investment property, selling to an investor quickly may be a good option. Companies like Stars and Stripes Real Estate can make that process simple and stress free, without you dealing with repairs, evictions or relocating tenants.
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 Southern California investment property owners. Your investment should be a sense of pride and generate income for you and your family. Property in any other state may be more trouble than its worth and a great candidate for a resell.
Do you own an investment property in the Southern California 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, or hire an agent to help you! You have options when selling your Southern California investment property, and we are here to help!