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Landlords’ Guide To Selling and Upgrading Investment Properties

Landlords’ complete guide in selling and upgrading rental properties.

Are you contemplating selling your low cash-flowing rental property? If your rental property is not bringing in as much income as you want, I have a solution for you. Today, I will share with you some tips on selling your rental property—from deciding to sell, when to sell, and what to do next. 

Firstly, why do landlords sell? Landlords typically sell if they’re having problems with tenants or with the property, such as necessary repairs and renovations. But one of our clients wanted to sell for a different reason. Their rental property was not yielding as much income as they were comfortable with, which is why they decided to sell. 

So, how do you know if your property is bringing in the right amount of cash flow? You can do this by checking the numbers. Go over the income that your property has generated since you had it rented out, compare it against what it cost you to purchase the property, and see if the property’s value is appreciating. That’s the time that you decide if your property is worth selling or not.

“Selling a single-family home to purchase a multi-family home will yield twice as much income.”

Once you’ve decided on selling, when is the best time to sell? The best time to sell is when the lease is about to end. You can sell your property even with a tenant, but it’s important to know that your property’s value will decrease if you take this route. On the other hand, if you’re selling your property without tenants, you will be able to sell it for at least $5,000 to $10,000 more. 

Moving forward, what are your options after selling? By selling your rental property, you can use the cash from the sales to purchase a duplex, multi-family home which will yield twice as much rental income than a single-family home. This is the game plan that we suggested to our client, and now their rental property is in the process of being listed. 

If you’re a landlord and you’re wondering what your options are, or if you’re on the fence about selling, give us a call at 248-905-102 or or fill out this form and we’ll take a look at your property and help you evaluate, and form a personalized plan suited to your needs and goals. For more information, feel free to go to our website www.prettyhomerealty.com. We look forward to talking with you!

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