Often times, people will hold on to an investment property, even if there are better places they could put their money. There is no rule saying you need to keep a property! In our latest post, we will help you determine when to sell your investment property in Detroit!
The Returns Aren’t There
How much is the property bringing in annually? Not just month to month, by over the course of a whole year? When you look at this way, you can better account for vacancies, repair costs, and maintenance expenses. You can just look at one month of rental income and assume it will be that way for 12 months straight. You can utilize the 1% rule to ensure you are charging enough rent. The 1% rule states that you should be charging 1% of what you paid for the house in rent each month. So if you paid $100,000, you should be charging $1,000 for rent. If you aren’t hitting these numbers, you might want to think about selling your Detroit investment property.
It’s Become A Full-Time Job
Many people who get into real estate investing have vibrant and full lives that also require their attention. Maybe you want to work on your investment full-time, and that is perfectly ok. However, many people aren’t prepared for the amount of time and work some properties require. Make sure it doesn’t completely take over your life. Owning investment property should add to your life by providing financial freedom. Not end up costing you all of your free-time.
Have you had a string of bad tenants in the house? There is likely a reason why they are attracted to your property. Maybe the house is in a bad neighborhood, or there is a defect in the housekeeping you from charging a higher rent, which would hopefully weed out some of the bad tenants. If it’s the location, it might be time to sell and reinvest in a better area. If it is the house’s condition, you can remodel or opt to start again with a new property in the Detroit area.
You Aren’t Excited About It
When you think about the property you own, you get a knot in your stomach. It might bring in the returns, but there is always something you have to deal with. Whether it be repairs or needy tenants. Sometimes properties can simply become a headache, leaving you unexcited and almost dreading to deal with the house for any reason.
In some cases, this can happen when someone becomes a an owner of a property through an inheritance. When you hold on to an inherited property because you feel like you have to, it can end up costing you a lot of money in the long run.
Your Money Would Do Better Elsewhere
There are all kinds of ways to invest your money. Always keep your options open, making sure you have your money in the best places possible. Consider your options. Would it be better to buy one investment in California or 5 in Wyoming? Is there an incredible deal on a commercial property that is fully rented out with long-term tenants? Don’t miss out on something big because your money is tied up in a bad investment property!
You Have Options
If you want to sell your property, give Detroit Fair Offer a call to find out how we can help you. We offer many solutions for investors who want to liquidate some of their assets in the Detroit area.