Spring Market Tempts Some To Sell Their Rental Property

Spring Market Tempts Some To Sell Their Rental Property

It’s one of the skills a successful Centennial  Parker  rental property investor needs to cultivate: if or when to sell. With property prices on the rise, some Centennial  Parker  landlords may in fact be asking themselves whether now is the time to cash in. Especially for most everyone whose rental property investment was made during the last few years, it’s already been a profitable gambit. According to the Case Schiller Index, by last year’s close, property prices across the nation had risen at the fastest rate in the previous nine years.

But if—and then when—to sell a Centennial  Parker  rental property can be a tough call. As a relatively illiquid investment, it takes a great deal more commitment than the decision to sell a stock or cash in a bond. But sometimes there are circumstances that can make the decision a little easier. For instance:

-Cash flow
One clear reason why you might choose to sell is if the rental property is losing money. The rental may have been vacant for too long, or the rent level may not have been sufficient to cover expenses.  The Denver rental market has experienced record low vacancy rates and increasing rents but for some investors they still don’t have a positive cash flow. In many cases, other real estate investors will be willing to lose money in the short term on a property they believe will appreciate in the future. It’s also possible that a full-time rental property professional may be able to tap economies of scale that are not possible for every individual investor.

-Greener pastures
Your Denver rental property may be doing fine—making money and showing substantial value growth—but now an unusually promising alternative investment has appeared. With the strong spring market, it may make sense to sell now to reinvest the profits elsewhere.
-Taxes Everyone’s tax situation is different, and the tax environment is subject to change. Even if that weren’t the case, there are some years when personal finances mean that a sale would be a much better idea than others. As with any substantial financial decision, your accountant or other financial advisor will have the relevant input. If a 1031 Tax Exchange is suggested make sure you are using a professional real estate agent that is experienced and knows what they are doing.

-Landlorditis
Being a landlord is not for everyone. Sometimes a professional property manager can alleviate nearly all the stress for an investor who doesn’t relish the vocation, but even then, there can be other chores: bookkeeping, manager management, a leak-through of tenant personality issues…that prompt a landlord to decide he or she would rather direct energy elsewhere. Opting for more passive forms of investment is always a possibility.

Denver  has already benefitted from some of the fruits of the national real estate recovery – but that alone doesn’t answer whether this spring is an opportune time for you to consider selling your Denver rental property. Call me today for a comprehensive property evaluation—the key piece of information that will help you decide!

Curious what your home is worth?  Use our FREE online valuation tool 
Click Here !

         Jason Peck is a Broker Associate at Keller Williams. He has been recognized locally and nationally as in expert in real estate. Locally he is a Realtor Roundtable Recipient with Denver Metro Association of Realtors. Nationally he has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in America.  He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free to 
contact him  or call 720-446-6301.

Photo provided by www.realestate.msn.com and google images

Spring Market Tempts Some to Sell Their Rental Property by Jason Peck


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Dated: April 22nd 2014
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