You may have any number of reasons for wanting to sell an investment property.
Investors often sell to take advantage of a hot market or offload a property they’re losing money on. Other times, they’ve inherited a property they don’t want to manage — or they’re moving away from one.
Whatever the reason, selling a rental property is not unlike selling a primary residence, albeit with key differences. Below are some steps to consider before you sell your investment.
Today, homeowners who want to move are in an ideal position to sell. The housing inventory is low, resulting in intense competition among buyers. Homeowners now have leverage to sell for the best terms possible, and higher home prices are a result.
To ensure that you get the best return possible for your home, there are some things you can do to help your house stand above the competition when you want to sell.
Whether you’re new to real estate investing or you’ve been doing it for decades, everyone has the same goal: to make the most money possible. From limiting the number of improvements you make to looking for foreclosed homes to buy, here are some ways to maximize your real estate investment profits.
Diversify Your Investments
Just as you shouldn’t put all your investment capital into one stock, you may want to consider investing in real estate in several different areas. While you know the market best in your area, the profit potential is limited when you set geographic boundaries.
As the landlord of a rental property, finding and keeping tenants is the best way to protect your investment and build your wealth over time. By being proactive, you can recruit and retain good tenants.
Here’s a quick look at how to find — and keep — tenants to make your income property profitable.
Owning rental property is a time-tested way for investors to consistently earn passive income. For most first-time investors, that means buying a single- or multi-family home and charging tenants a monthly rent.
But owning a rental property involves more than finding a tenant and cashing a rent check every month. Landlords have responsibilities and legal obligations you must follow. You also want to make a smart purchase from the start that will give you the best return on your investment.
Here’s a quick guide to buying a rental property as a first-time rental property investor.