Should I sell my rental property?
Selling a rental property: things to consider before selling
Rental properties are often a great long term investment, so the decision to sell should not be taken lightly. There are a few important things to consider before selling your rental property.
How is your rental property performing?
If you're generating free cash flow on a monthly basis that covers your mortgage, taxes, insurance and maintenance costs, it's difficult to justify selling. If, however, you are losing money consistently and the property is in a market where home values are not appreciating significantly, then you should consider selling.
What are your investment alternatives?
It may make sense to sell even a high performing rental property if you have another investment opportunity that will produce superior returns on your cash investment ("cash-on-cash returns"). Some rental property investors are comfortable "trading up", in many cases from single family portfolios to multi-family deals.
Do you need the money for unexpected expenses?
No one wants to be forced to sell a long-term investment, but sometimes it's unavoidable or necessary. If you have substantial equity built up in a rental property and you need to access that capital to pay for unexpected bills, that is a reason to sell. Before selling, you might want to explore a cash-out refinance to pull cash out of the property. This would allow you to hold onto the property but you should make sure the terms of the cash out refinance are such that your rental property's financial performance contributes to monthly free cash flow.
Is managing your rental property too much of a hassle?
Is your rental property is in a market with excess inventory and you're experiencing stressful vacancies? Perhaps you can't seem to successfully screen out difficult tenants or find a reliable or cost-effective property management company. Or managing a rental property is the last thing you want to be dealing with -- some people love managing rental properties, other people quickly realize it's not for them. If any of these situations are relevant, then it might make sense to sell your rental property.
I've considered my options and still want to sell my rental property...
Selling your rental property doesn't need to be expensive. With OfferMarket, you can sell your investment property to another investor or to a primary residence buyer. Regardless of how you choose to sell your rental property, you will never pay a commission or fee. Rental property owners who sell on OfferMarket's real estate marketplace save thousands of dollars and countless hours.
Frequently Asked Questions
Can I sell a tenant-occupied property?
Yes, we encourage you to sell your leased property. There's no need to wait until your property goes vacant and carry the costs associated with a vacant property.
What if my tenant is delinquent?
Not a problem if your tenant is not paying rent (#rentstrike). The rental property investors in our network have shown a considerable appetite for rentals with non-performing tenants.
What happens if the buyer has an agent?
Buyers are required to either pay their buyer's agents commission directly or increase their purchase price and request that you pay the buyer's agent commission.
How does OfferMarket work?
- Set your price and sign our 1-page marketing agreement.
- We distribute your deal overview to thousands of targeted buyers.
- We schedule a Safe Showing for all interested buyers.
- Competitive offers are typically received within 24 hours of the showing. If you choose to accept an offer, we send you and the buyer our contract and introduce you to our title company.
Where does OfferMarket operate?
We operate everywhere in the United States. No matter where your property is located, we are able to deliver competitive offers.
Do I take on any risk?
OfferMarket transactions are 100% risk free for the seller. You can reject any offer for any reason. You can cancel our marketing agreement at any time.
How does OfferMarket get paid?
We get paid a small fee by the buyer at closing.
How does OfferMarket compare to MLS?
| Comparison | OfferMarket | Traditional Brokerage |
|---|---|---|
| Commission | 0% | 4-6% |
| Seller Concessions | 0% (As Is) | 0 - 2% |
| Repairs | $0 (As Is) | 0 - 2% |
| Showings | 1 | 10 |
| Open Houses | 1 | 1 |
| Closing Timeframe | 15 - 45 days | 60 days |
| Closing Costs | 0 - 2% | 1 - 2% |
| Days To Receive Offer | 1 | 60 |
| Privacy | High | Low |