Do you need to sell your investment property in Kansas City? 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 one of the best ways to generate wealth and income, this is not the case with every specific property! Investors tend to hold onto properties longer than they should, even when a property is costing them money thereby negating any profits they may have made. Another common mistake is to hold onto a home that doesn’t cash-flow, but that has some equity. It may be time to sell the property and buy something that is a better fit for you. Keep reading to learn more about our 4 signs its time to sell your investment property in Kansas City.
Negative Cash Flow
Investment properties will have good times and bad. But keep your eye out for patterns. If all of your properties are going through a down time, it may just be the overall market and it is probably best to just wait it out. But if there is one home that is consistently underperforming it may be time to part from that one. Nothing says you have to own a home forever. There are lots of great investments out there and getting the cash out of a poorly performing house is a great way to reallocate your investment dollars and change your situation.
Difficulties In Distance
Owning rental properties in another state can work, but it can also be very challenging. It may be very difficult to do property management yourself and it may be too expensive to pay someone else to do this work. 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.
The Value Has Jumped Significantly
If your property has gone up substantially in value you may be able to sell your home and realize a lot of profit. You can of course keep making small amounts of monthly cashflow, but if the value has gone up substantially, you may get decades of cashflow in one year. Plus there is no guarantee that the property will continue to perform well in the future or that you will retain fantastic tenants. 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.
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 Kansas City 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 Kansas City 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 Kansas City investment property, and we are here to help!