{"id":3406,"date":"2018-01-18T10:40:19","date_gmt":"2018-01-18T18:40:19","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=3406"},"modified":"2025-09-17T09:07:19","modified_gmt":"2025-09-17T16:07:19","slug":"sell-investment-property","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/sell-investment-property\/","title":{"rendered":"Is it Time to Sell Investment Property?"},"content":{"rendered":"

Whether you own one single-family rental, an apartment building or a hundred condos across several cities, deciding to sell an investment property is full of challenges. Here are a few things to consider before and during the selling process.<\/p>\n

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Source: (Belle Co\/ Pexels)<\/figcaption><\/figure>\n

Find the Best Time to Sell Your Investment<\/h2>\n

The Personality of the Neighborhood Has Changed<\/h3>\n

Imagine the neighborhood as a time-lapsed video \u2014 two decades dramatically unfold in the course of just a few minutes. You see retirees move out, young families move in. You see investors swoop in and flip properties. You have a constant coming and going of renters. You see kids go from stroller to tricycle to bicycle to their first car. You watch the trends in landscape design and front doors change eras.<\/p>\n

The neighborhood 20 years ago might have been known for the grumpy old men who\u2019d meet at the park every morning for cards; now it\u2019s considered the best cul-de-sac for raising kids! Neighborhoods are constantly changing so when you sell has everything to do with to whom you sell.<\/p>\n

If a neighborhood is up-and-coming, you may get top dollar for it or hang onto it as it increases further. If it\u2019s on the decline, you may want it out of your portfolio ASAP.<\/p>\n

You\u2019re Not Sure About the State of the Market<\/h3>\n

Investments are hard to time correctly \u2026 otherwise, everyone would have bought Google stock back in 2004. Real estate is no different.<\/p>\n

A new company moves to town, increasing the value of all the properties in the area because of demand. Conversely, a big factory may close, causing the surrounding neighborhoods to empty out or deteriorate. Just look at all the cities vying for Amazon\u2019s Headquarters 2.0. Wherever they end up, the e-commerce giant will completely change the economy of the city \u2014 from jobs to cost of living \u2014 just like it\u2019s done in Seattle (Headquarters 1.0) throughout the last decade.<\/p>\n

Solution: Hire an Experienced Realtor<\/h3>\n

Maybe you did set up a time-lapse video for the last two decades and know exactly what\u2019s happened with your area. Go you! If not, talk to someone who\u2019s familiar with how the city and neighborhood have changed. Speak with someone who has watched the change happen over the course of their career.<\/p>\n

\u201cWork with an agent that knows the formulas. It\u2019s a very data-driven process,\u201d says Stephen FitzMaurice<\/a>, a top-selling agent in Portland, Oregon. \u201cIt\u2019s up to the agent to present a full financial picture. Investment properties have their own language and agents need to speak that language.\u201d<\/p>\n

HomeLight<\/a> can match you with a top real estate agent in your area. This person will help you determine if you should sell or hold on a bit longer. They can also help you find a new rental if you\u2019re looking to stay in the market.<\/p>\n

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Source: (Alex Tan\/ Death to the Stock Photo)<\/figcaption><\/figure>\n

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The Hassle of Managing the Property<\/h2>\n

You Live Far Away<\/h3>\n

Say you bought two apartment units in Missouri back when you were 32 and living just down the street. Now you live in (or are moving to) San Diego. Being a long-distance landlord is no easy feat.<\/p>\n

You Don\u2019t Want to Deal with It<\/h3>\n

As you approach retirement, you\u2019re excited about sitting in a cafe to read the newspaper until noon on a weekday and traveling to Paris on a whim. Dealing with a tenant\u2019s early Saturday morning email request about the leaky faucet is not the retirement you dreamed of. Though real estate is considered passive income, it\u2019s not Paris.<\/p>\n

Solution: Find a Property Manager or Sell<\/h3>\n

If you live far away or just want to be done, it may be worth it to you to hand off the management. If you have family or friends in town, great. If not, a property manager is a good option. Property managers usually charge 8 to 12 percent of the monthly rental income, plus expenses. Fee structures vary so read the fine print before you sign on.<\/p>\n

If you\u2019re over it, sell. (Did we mention HomeLight?)<\/p>\n

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Source: (chefkeem\/ Pixabay)<\/figcaption><\/figure>\n

Dealing with Difficult Tenants<\/h2>\n

Selling a house when there are renters living in it is like a parent trying to get their 8-year-old to clean his room before dinner. The kid simply doesn\u2019t care as much as the parent and he\u2019s probably just going to shove most the mess under his bed. You can sell with tenants living in the house, but you\u2019ll have to be creative.<\/p>\n

Solution: Give Tenants Options and Incentives<\/h3>\n