Selling Investment Property Tip #1: Avoid the Eviction Process
If you’ve got a terrible tenant in your investment property, you have probably considered evicting them and starting over with someone else. The problem is that evicting a tenant isn’t as simple as it seems, and depending on how stubborn the problem tenant is, they can end up dragging the whole thing out for months on end.
During that time, you’re forced to cover the mortgage payments, home insurance, and property taxes without the help of your tenant paying rent. Many people prefer to simply sell the property and be done with it.
Selling Investment Property Tip #2: Consider Your Investment Options
One bad investment shouldn’t bring down your entire portfolio. Once you’ve run the numbers and decided that an investment property is no longer worth keeping, it’s smart to cash out as quickly as possible so you can move on to a new, better investment.
If you had a bad overall experience in real estate investing, you might even decide that there are other investment markets better suited to your skill set and personality.
Selling Investment Property #3: Sell Before the Market Takes a Major Downturn
The real estate market, like all markets, goes up and down in waves of several years at a time. If you know you’re going to sell your investment property, you definitely want to do so before another major downturn. The reason is that you might end up waiting 5-10 years before the value comes back up to where it is currently.
For those who are near the end of their career and looking to cash out for retirement, you simply can’t afford to wait out another economic recession while property values try to recover.