Have you checked deals
in YOUR area yet?
Verify Availability!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
November 11, 2019, 02:47:52 pm
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Have you checked deals
in YOUR area yet?
Verify Availability!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
November 11, 2019, 02:47:52 pm
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Click Here to Register for the Discussion Forums

Author Topic: How To Know When To Cut Your Losses On An Investment Property  (Read 54 times)

Offline SimpleHouseOffer

  • Member
  • *
  • Posts: 4
How To Know When To Cut Your Losses On An Investment Property
« on: September 11, 2019, 09:38:50 am »
Article: Know When To Cut Your Losses On An Investment Property

Itís important to know when to cut your losses on an investment property in Andover. In our latest post, we will help you find out if it is better to hold onto the property or walk away.

Often times, people will purchase an investment property, holding on to in even when it isnít performing. While in some cases, it is best to hold on and enjoy the ride, in other cases, you will want to determine if getting rid of the property will actually be the better choice. Sometimes, it is better to cut your losses and walk away as opposed to dealing with a property that isnít working out for you.

Consistently Bad Tenants
If you canít seem to find a good tenant, there is likely a reason why. Either a bad property or a bad location will cause you to attract lower-quality tenants. This causes turnover and almost assures you will lose money. If you canít seem to find a good tenant, if you are tired fo people moving in and out, and if you are sick of paying for tenants screenings, selling off your Andover investment property may be the right choice for you!

Youíre Not Seeing A Profit
While this might be a no-brainer, not seeing a profit right away isnít a sign you should just get up and walk away. Property values go up and down, as does the demand. If it makes to hold the property while the market rebounds, then by all means, do so. Just like the stock market, real estate values go up and down. If you arenít receiving a profit today, thatís not to say you wonít in the not so distant future.

Deciding to sell your investment property in Andover, should only be done after your efforts have been exhausted and you have determined that the numbers simply arenít there. You canít just hope things will get better for your Andover investment property. You need to follow the numbers and reinvest where it makes more sense for you.

There Are Better Opportunities Available
Are there great opportunities out there that keep passing you buy? If you have capital tied up in a property that isnít performing, you could be missing out on some serious profits. Donít allow yourself to get stuck with an underperforming property, while other real all the rewards. If you see a lot of action and growth in your local market, while you are simply sitting stagnant, you may want to consider putting your money elsewhere.

Now weíre not saying that you should immediately sell just because there is a better opportunity here or there. The market is always fluctuating, with property value and demand rising and falling. If you are seeing a nice profit, you donít want to jump the gun because you see something that is only slightly better.

Is There Potential?
Does the property in question have potential? Maybe a few small upgrades could increase the value? Or maybe you havenít been increasing the rent as you should be, and have found yourself priced well below market. Take a look at when your tenantís lease is up and how much you can realistically raise the rent without your tenants wanting to move out. Investors will often get stuck in their ways, never raising their tenants rent as they should be. The potential value of the property can be much more than you are actually seeing. Make sure you are doing everything you can to maximize the value of your investment.

Chris Edwards
« Last Edit: September 12, 2019, 03:19:34 pm by $Cash$ »

 




SMF 2.0.15 | SMF © 2017, Simple Machines