Should I sell my investment property?
My landlord clients often ask “should I sell my investment property?”. First, I am a big proponent on trying to keep an investment property at all costs. In my opinion, selling an investment property should be your last resort. I believe real estate is one of the best investments out there. Therefore, when clients ask me about selling their investment properties, I try to convince them otherwise.
Nonetheless, if you do decide to pursue the options of whether you should or should not sell your investment properties, I ask these two questions to better advise my clients:
Are you sick and tired of being a landlord?
Have you grown tired of dealing with tenants? Are you unhappy and frustrated with the process of managing the property and its’ repairs? If the answer is yes, then, sell! If you are not happy anymore or have become miserable being a landlord, you should not sacrifice your happiness for it. There are many other things you can invest that money on that will not making you unhappy.
If this is not the case, then I ask the second question…
What do you plan to do with the money after you sell?
This may be a heavy loaded question as it may bring up even more questions. Will it sit in a bank account? Will it be re-invested in another investment opportunity? Depending on what you plan to do with the proceeds, I can better advise my clients the best course of action. For example, if you plan to just keep in in your bank account, I would not suggest selling it. You make close to nothing on that money sitting in a bank. On the other hand, if you plan to re-invest, then selling to put your money to work in a better investment may be the right move.
These are typical questions you should be answering as a starting point to figure out if it is time to sell or not.