Unlike selling a stock or a mutual fund, to sell your investment property – regardless of the reason – is not something that’s as simple as calling up your broker on the phone and having a check for the proceeds in your mailbox by the following week.
In fact often, the time that it takes between deciding to sell and actually doing it can take months – and in many cases, this can be a process that takes more work even than selling your own home.
In some cases, you may find that you will realize a nice amount of profit by selling a property (or properties), and / or you may simply be ready to retire and cash out. In other instances, the allure of being a landlord just wasn’t what you had expected, and you’re ready to move on to something else.
Sometimes, after a certain number of years, the depreciation deduction can be used up on a property. When the investment can no longer be depreciated, you may also want to consider selling it, and then possibly purchasing another.
In still other cases, you may own what is referred to by many investors as an “alligator” property. This is a property that, for one reason or another, is just simply not profitable. After performing a cost to income analysis and determining that you in fact have one of these, then it may be time to move forward and sell.
The truth is that investors buy and sell equities regularly. And, while it is much easier to perform these types of transactions, if it makes no financial sense for you to hold on to a real estate investment, then you should probably consider moving on and selling that investment too – even if you simply turn around and purchase another property with the proceeds.
If you’re managing real property, and you would rather reap the benefits of your investments without having to spend a great deal of time running your business, Contact Us. We are professionals in the management of residential rental properties in the Central Florida area.