4 Ways to Know It’s Time to Sell Your Investment Property In Florida
One of the most challenging considerations when building and holding a real estate portfolio is understanding the right time to sell, or exit your holdings. The market fluctuates, adjusts, settles, and every moment seems like a missed opportunity. However, if you’ve selected strong investments, you are most likely in a position when you have the option of holding or selling, depending on what is best for the growth of your portfolio. Unfortunately, if your investments are questionable, market fluctuations may be the dominating factor in your decision to sell your rentals, and portfolio.
In this article we will look at four ways to know if you should sell your Florida investment property or portfolio.
One of the easiest metrics to consider for the success and viability of your portfolio when deciding to sell is the ROI. If your asset isn’t performing, meaning generating income greater than the cost, selling your home or homes makes sense. Property management fees, maintenance, property tax, and association fees can all quickly erode your potential earnings.
And if you aren’t sure, experienced professionals can help you determine if there is a better use for your capital somewhere else. At Duval Home Buyers we can look at your ledgers, and use those to compare what you might earn from holding, a conventional sale, or a direct cash sale, including closing costs, so you can make the best possible decision for your investment.
If sales are hot in the neighborhood of your rental rental portfolio, it might be a good indicator that it’s time to sell your investment property. If a community is up and coming, especially with new infrastructure, businesses, and things for residents to see and do, it’s a great time to show potential buyers the value of the area, allowing you to get a top sales price!
Similarly, if your neighborhood is on the decline, with crime statistics rising, businesses leaving, and more homes showing signs of deferred maintenance each day, it may be time to sell while you can still earn a meagre profit.
Most real estate investors have at least heard of the 1031 tax-deferred exchange. Would selling a property from your portfolio allow you a better opportunity to take advantage of it? Knowing how tax laws and accounting can affect your bottom line may provide an opportunity to create a better ROI by selling your current rental, and buying a new one in a better area or with a better return. Be sure to ask an expert advisor to go over your options with you!
This one may seem like a copout, but for many investment owners, personal factors often yield the most compelling reasons to sell. Sudden financial emergencies can make selling an appealing solution, as can deciding to be done with the hassle of managing and maintaining the properties within the portfolio. For many sellers who find themselves in this group, a quick sale to a cash buyer might be the best option. They can close in a few weeks, or even give you months to relocate tenants.
Duval Home Buyers
The Duval Home Buyers Direct Sale can help you sort through these factors, and understand whether or not you should sell your investment property in Florida today. Additionally, if another investment property is the natural next step in your investment strategy, don’t forget to ask about the current inventory of available properties in Jacksonville and the surrounding areas. If you decide to sell to Duval Home Buyers, we want you to feel like you made the best possible decision for your unique situation. Give us a call at 904-346-0600 and we’d be happy to answer any questions and review your portfolio!