sell

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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