When to sell a rental home
When Should I Sell My Rental Property?
hey guys question that comes up a lot to
us
is when should i sell my rental property
let's check it out
so guys when should i sell my rental
property that is a great question
and i think obviously the obvious answer
is you should sell it
uh when you're going to make money when
you sell it so when we first think about
what it takes to
sell your property and this is great for
our people our investors that are
thinking of buying a turnkey property to
know up front going in
what it takes to sell your property so
you're probably going to need and want
to use a realtor
i believe this the best way to sell
because that goes out to tens of
thousands of people
on the mls multiple listing service yes
the realtor does charge a six percent of
the sell price commission
three percent of that would go to the
listing agent and three percent will go
to the buyer's agent
but i just think you'll still be able to
sell for top dollar more than six
percent
trying to sell it by yourself pros and
cons of that if you're more experienced
maybe you can try selling it out
selling your property a seller you know
for sale by owner
but so you're going to have a realtor
fee when you sell your house
then you're probably you're going to
have closing costs
okay so closing costs you know there's
title fees
um and other things associated with that
but i would i would just estimate around
one percent of the sale price if it's in
kind of the 100 to 200 000
range so let's just call it you know
fifteen hundred dollars
in closing costs um now sometimes
if you're selling to a homeowner they
sometimes want you to pay their closing
costs which can be
up to three percent but that's
negotiable and depends on market
conditions
so that can sometimes be four to you
know 7k just depending on the sale price
but um you know for our example say
you're gonna have a six percent and a
fifteen hundred dollars so
knowing that i would not sell my
property within
one to two years um that's just not
enough time
for your house value to go up right
assuming a three to six percent
appreciation which memphis has seen over
the past four to five years
actually a three to five you're going to
want to wait more years than that and
really you want to look at real estate
in the 5 plus or 10 plus time frame
that's when you're really going to
see the the value of real estate and the
compounding effects of appreciation and
rent appreciation
really help you out so be thinking of
holding this out for the long term
because at one to two years
let's say it's only gone up three
percent every year i mean you're barely
breaking even because you have to sell
with a realtor
so keep that in mind before you go in so
now thinking when to sell
personally i cannot time the market
um so i would just think depending on
here are the questions i would be you
know what would i net
so what am i going to sorry about that
what am i going to net
when i sell my property kind of run this
quick calculation you can go to a title
company and they can give you a quote
on what their closing costs are and
title fees are so think what am i going
to net
okay have i made a good roi am i going
to make a profit on that how much then
what are you going to
do um you know with the equity
and the capital that you made on the
proceeds of that sale
do you have another investment lined up
if yes and it's you think it's going to
be a great return then yes i would do
that
if you're thinking well i have a huge
amount of equity in this property
and i don't really know what to do with
it maybe instead of selling you could
refinance i have another video on that
and you could refinance the property and
you get those those um
the equity taken out tax free consult a
tax accountant where if you sell it
you're going to have capital gains so i
would also think about your
your tax what what what's going to
happen your tax consequence is wise
especially if it's an investment
property a rental property
you're going to be taxed differently
than as if you're a homeowner
so consider those things atta consult
the tax accountant
so be considering that um and yeah what
you're going to be doing with your
investments so those are the things of
when i should sell my property
and also before you start to buy a
property begin with the end of
end in mind stephen covey um you know
kind of thinking of what you're going to
be doing and thinking you're going to be
holding on to this for the long term
this is not a short term get which get
rich quick stream
scheme sorry about that it is um this is
a long term
slow boring and passive way to grow
generational wealth thank you so much
for watching this video guys
let me know your thoughts what are the
things you should consider
when you're going to sell your house and
the decisions you make to when you want
to sell your rental property
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