Often, folks hang onto an investment property even when there could be better ways to use their money. There’s no strict rule saying you have to keep a property forever, but you still might wonder, “What are the signs to sell your investment property?” In our latest post, we’ll help you figure out the signs to sell your investment property in Chicago so you can decide when to let go of your real estate investment.
The Returns Aren’t There
How much annual income does the property generate, considering the entire year rather than just month to month? Evaluating the property’s performance on an annual basis allows for a more comprehensive consideration of factors such as vacancies, repair expenses, and maintenance costs. Relying solely on the monthly rental income for a 12-month projection may not accurately reflect the property’s overall financial viability. The application of the 1% rule becomes crucial in ensuring that the rent charged is adequate. According to this rule, the monthly rent should be 1% of the property’s purchase price. For instance, if the house was purchased for $100,000, the recommended rent would be $1,000. Failure to meet these benchmarks may prompt a reconsideration of retaining or selling your investment property in Chicago.
It’s Become A Full-Time Job
Many folks who start investing in real estate have busy lives. You might want to do real estate full-time, and that’s okay. But some properties can be a lot of work and take up a ton of time. It’s important to make sure that real estate doesn’t completely take over your life. Owning investment property should give you financial freedom, not eat up all your free time.
Tenant Issues
Have you had a bunch of not-so-great tenants in your house lately? Well, there’s likely a reason behind their choice to rent from you. It could be because the house is in a not-so-great neighborhood, or there might be some issues with how it’s taken care of that prevent you from charging a higher rent. Charging more could potentially attract better tenants. If it’s the neighborhood causing problems, it might be a good idea to think about selling and putting your money into a better area. On the other hand, if it’s the condition of the house that’s the problem, you could fix it up or explore the option of getting a new property in the Chicago area.
You Aren’t Excited About It
When you think about the place you own, it makes your stomach feel tight. Sure, it might make money, but there’s always something you need to handle, like fixing things or dealing with tenants who always need something. Sometimes, owning property can just be a big headache, making you not want to deal with it at all. This can happen, especially when you inherit a property. If you keep an inherited property just because you think you should, it could end up costing you a lot of money over time.
Your Money Would Do Better Elsewhere
There are many ways to put your money to work and make it grow. It’s important to be open to different options and choose the best places for your money. Think about your choices. Is it smarter to invest in just one thing in California, or spread your money into five things in Wyoming? Maybe there’s a great deal on a building that’s already rented out with long-term tenants. Don’t miss out on a big opportunity because your money is stuck in a not-so-good investment!
You Have Options
If you’re thinking of selling your property, just give Heartland Funding Inc. a call at (800) 255-8250, and we’ll explain how we can assist you. We have various solutions designed for investors looking to sell some of their assets in the Chicago area.