sell

How to Know When It's Time to Sell Your Rental Property

hey there I'm Julie broad of revenue

comm and another fantastic real estate

investing video tip for you usually we

talk about buying houses we talk about

where to buy how to know if you've got a

good deal raising money but today I want

to talk about the other side what

happens or how do you know when it's

time to sell so complicated question

really because there's a lot of factors

that are going to go into you

determining when it's time to sell but

it's one of those things where when you

buy it you might think I'm going to hold

it for five years but that doesn't

always work out quite that way so how do

you what's a good indicator it's time to

sell well first of all one indicator

it's time to sell is perhaps if maybe

you didn't do a deal that actually moves

you closer to your ideal typical day

maybe you were just chasing numbers and

you bought a property with good numbers

but it stresses you out you're always

dealing with tenant problems and maybe

it's a rougher neighborhood so there's

maintenance issues maybe even crime

might be time to sell just so you can

get your energy and time back in order

to focus on other things that will move

you closer to creating that ideal

typical day listen sometimes your

lessons are going to be learned by

admitting that it's not working out and

just moving on from it and maybe taking

a little bit of a financial hit maybe

not getting the returns you were hoping

for but sometimes that's when it is

really time to sell and we certainly

have sold a property or two for those

reasons and if you've read my book more

than cash flow you know one of the one

of the properties we maybe not so

lovingly call a crack house was one of

those properties that fits that bill

beautifully another reason that you

might want to sell and this was one

where we sold it's because you have made

a good return and looking forward you're

going to have to put more money into the

property for upkeep maintenance

renovation and in the foreseeable future

you're not going to get a good return on

that investment so just as a really fast

example we bought a duplex in 2001 I

think we paid 100

eighty-seven thousand dollars for in

2008 I think trying to remember the

years here we were inside of it doing

some renovations to just make it look

better for tenants you know changing

flooring changing countertops just some

basic kind of lipstick type renovation

but as we were there doing that work we

started to look around and we could see

some significant issues that we're going

to need addressing in the next two to

five years we also knew at that point

that our property had more than doubled

in value and it was very very unlikely

to gain much more in value in the next

five to eight years so we'd be putting

in a lot more money and getting

virtually no return for that further

investment so we put it on the market

and we sold it and we sold it for more

than double what we paid for it and

right now today 2014 and pretty sure we

would not sell it for much more than

what we sold it for in 2008 so solid

decision because in the meantime we

certainly would have been putting money

into it now it did cash flow and rent

rates have gone up so there is that

other side of it and if a property like

that was moving us closer and closer to

our ideal typical day maybe we would

have kept it but it was gonna take

probably ten to twenty thousand dollars

if not more in the next few years and

work just to keep it at the same

condition it was in that day so that's

another reason a third reason is it's

time to move on you can see things

coming in your market and you know your

investment move better off either in

your pocket or moved into a different

market or a different type of investment

vehicle there are cycles in the real

estate market for Canadians

check out secrets of the Canadian real

estate cycle great book for all

investors read books by cure and trust

the housing bubble for example to

understand the real estate cycle but

there are times in the cycle when it

makes sense to exit and sit on the

sidelines for a while or exit and put

your money somewhere else and if you

understand the cycle you'll be able to

look at it and see all right of course

all of this means you have a plan and

you know what you want your money to be

doing for you you know what your ideal

typical day is that you're working

towards because it's really really hard

to make any of the

decisions if you don't know that piece

right if you have questions you can post

them right here in YouTube if that's

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see you there and of course see you next

time and if you liked this video give me

a thumbs up it makes me so happy it

really does I do a dance alright thanks

see you next time

I don't actually dance I'm kind of a bad

dancer