Owning a rental property could be a fantastic source of passive income in certain markets and with certain conditions — but in the wise words of Kenny Rodgers, “You gotta know when to hold ‘em, know when to fold ‘em, and know when to walk away.”
Knowing when to sell your investment can be tricky. These five signs will guide you to know when selling a rental house for cash is a good idea.
Many get into the real-estate market to cash in on an investment’s growing value. If your house is worth significantly more than what you bought it for, you might consider taking the win and cashing out before the value can drop.
If your house has lots of attention, you’ll need to be careful about your buyers. Look for a buyer who will make the highest offer possible so that you can take full advantage of your property’s heightened value. You should be careful about offers that are too high:
“Investors placing unusually high offers are typically paying to tie up the property. During the contingency period, they will probably attempt to arrange a price reduction. Real estate investors all have access to the same database, which means they should come up with similar numbers and estimates. If an investor is making an abnormally lofty offer, it is probably too good to be true.“
— Souki Fournier
Click here for more buyer red flags to look out for.
Landlords often face high costs when renting. Income earned from renters is offset by taxes, utilities, insurance, and maintenance and administrative fees. When the expenses outweigh the incoming cash flow, selling a house for cash is a smart move.
Nobody becomes a landlord to lose money, so if you notice that your cash flow is weakening, either from lowering income or rising costs, it may be time to walk away.
Seller’s markets put the cards in the seller’s hands. Buyers will have to lower their expectations for their sellers in such a market. Rather than demanding extensive repairs and costly stagings, a buyer may be more willing to buy a home as-is in a seller’s market.
If you find the landlord profession unsatisfying, it may be time to sell. If running your rental property brings you emotional and financial distress, then it is time to sell. Renting to others can be a significant source of hardship and stress and will often involve more time and labor than initially thought.
Carefree tenants are a financial burden. Buildings that are treated like trash will sell like trash. If the responsibility is too much and tenants aren’t giving you a break, cut it short and sell. Nasty tenants aside, you may be ready to retire. If you are ready to simplify your life, consider selling a house for cash.
Selling a property can be a highly complex matter. Traditional real estate agents may make lofty offers that are weighted by contingencies or conditions that could cause the buyer to cancel their offer. A contingency might mean that a buyer will offer a lofty goal, but only if they can secure financing for the house within a certain time window. These waste valuable time!
You won’t have to waste any time on repairs or waiting for a mortgage to be secured. A good cash offer will allow you to securely collect the return on your investment as fast as possible. A true win in the real estate game. Finding this kind of offer is the key to selling a rental house for cash.
A rental can be a valuable source of passive income, and the last thing you want to do is give your investment away to a low-ball offer. Sell your house with Simply Homes. Simply Homes is the best tool for finding the highest cash offer possible on your rental property. Contact Simply Homes today to request an offer on your property in as little as fifteen minutes.