Your first investment property can be very exciting, especially if you find one that’s in good shape and needs little reconstruction. And if you find one with tenants standing by to lease, well, you really are lucky. Rental property offers one of the most sought-after investments in the country, and even with expenses, it’s still a great investment.
If your property is paid for, your rental income is even more valuable – pure profit. And, if the home is in great condition, no upgrades will be needed. If you have all these things working for you, there would be no reason to consider selling, right?
So, how do you know if it’s time to sell?
- High turnover with tenants could be a sign, not to mention it is very discouraging.
- Economy fluctuations can have a negative impact on investment property.
- Severe weather can be a problem, especially if is raises insurance premiums.
Doing nothing and seeing your investment property lose value (not to mention income) is not the answer. So, what do you do? Sometimes properties recover from market shifts and some even increase in value.
Generally, investment properties come with a high learning curve and what you learn from one investment will naturally help you in your next one.
It’s smart to get advice from a property management company to get insight into making the best decision whether to hold or sell. Cousin James Management has been helping property investors make difficult decisions for years. In fact, if it comes down to a matter of stepping aside and letting us manage the property, we can often find solutions to help salvage an otherwise defunct property. We have resources for repairs and updates and we can take the worry of finding (and vetting) great tenants.
Of course, if it’s time to move on to another property, that’s your decision in the long run. We’re on hand to help, either way.