Quite often, people will hold on to an investment property, even if there are much better places they could park their money. There is no law saying you have to keep any property! In our latest blog post, we will help you figure out when to sell your investment property in Chicago!
The Returns Aren’t There
How much is the property bringing in annually? Not just month to month, by over the course of a whole year? From this perspective, you can better account for vacancies, maintenance expenses, and repair costs. Take a look at one month of rental income and assume that it will stay the same for 12 months straight. You can utilize the 1% rule to ensure you are charging enough rent. The 1% rule states that you should be charging 1% of what you paid for the house in rent each month. So if you paid $100,000, you should be charging $1,000 for rent. If you aren’t hitting these numbers, you might want to think about selling your Chicago investment property.
It’s Become A Full-Time Job
Many people who get into real estate investing have vibrant and full lives that also require their attention. Maybe your aim is to be investing full-time, and there’s nothing wrong with that. The truth is though, many people aren’t prepared for the amount of time and work some properties require. Make sure it doesn’t completely take over your life. Owning investment property should add to your life by providing financial freedom. Not end up costing you all of your free-time.
Experiencing a case of bad-luck tenants in your building? There is likely a reason why they are attracted to your property. The home could be in a rough neighborhood, or there are some needed repairs in the home blocking you from charging a higher rent, easily weeding out some of the bad tenants. If it’s the location, it might be time to sell and reinvest in a better area. If it is the house’s condition, you can remodel or opt to start again with a new property in the Chicago area.
You Aren’t Excited About It
When you think about the property you own, you get a knot in your stomach. It might bring in the returns, but there is always something you have to deal with. Whether it be repairs or needy tenants. Sometimes properties go from being carefree to becoming a headache, making you dispassionate and just about hating to deal with the property for any reason.
In some cases, this can happen when someone becomes an owner of a property through an inheritance. Keeping an inherited property because you feel like obligated to, can end up costing you a bunch of cash down the road.
Your Money Would Do Better Elsewhere
There are all kinds of ways to invest your money. Always be open to investment opportunities, making sure you have your money in the safest places. Envision the possibilities. Would it work out better to purchase one multifamily in Texas or 5 in Wyoming? Is there a great deal on a commercial office property that is fully leased with long-term tenants? Avoid missing out on a big opportunity because your cash is wrapped up in a bad investment property!
You Have Options
If you want to sell your property, give Global Abundance LLC a call to find out how we can help you. We offer many solutions for investors who want to liquidate some of their assets in the Chicago area.