To save you from having to read the next couple of paragraphs- If you don't HAVE to sell real estate... DON'T. This is coming from a real estate salesperson who would stand to make much more if you choose to sell rather than keep your property as a rental. In good conscience, I have to give you the advice that I heed and that I give to the ones closest to me.
Keeping your property as you step into your next home is a fantastic way to start building your rental portfolio. Most likely you have a great interest rate compared to if you were going to try to purchase an investment property in the future. This will help you stay cash flow positive while continuing to gain equity. If you are reading this, most likely you are in Southern California, which historically experiences greater property appreciation than the rest of the country. This allows you to pay down your mortgage, obtain cash flow and increase your net worth all at the same time! Adding residential real estate to your investment portfolio is a fantastic way to diversify your investments and protect your net worth at the same time.
Maybe your property has been a rental and now your tenant is leaving after many years and you are starting to think about selling. The thought of going through the process of getting the home freshened up, putting a new tenant in and starting all over can be a headache, right? Completely wrong. This is where I come in to help for a very nominal fee. I go through my clients home to provide them with a proposed punch list to get the property rent ready again to obtain maximum return on investment. I coordinate any repairs that you choose to move forward with with my vendors, I list the property on all of the internet websites that tenants are looking on, I schedule all of the appointments with interested renters, I collect all the applications, do the background checks, credit screening and help go over the applications with you so that you can make an informed decision on your next tenant. Then, once you've chosen your tenant I draw up the official lease and perform the move in inspection for you. All of this so you don't have to!
If your property was a rental property in the past and you were managing it yourself, odds are you weren't very active on keeping up with the rest of the market by issuing rental increases with your annual lease renewals. If it's been a few years, you may be shocked to see what the current rental rate would be for your property. If you choose to move forward with property management with me, that's one of the services that I provide. I will update you with the most recent market analysis when it's time to renew your tenants lease. This way you can be informed about your investment at all times. I will help you start treating your home like the business that it is.
So you are still leaning on selling rather than keeping your investment and letting it grow. That's fine! Just make sure you are fully analyzing things like capital gains and other tax ramifications with your realtor and CPA. What are you going to be doing with those funds? Are you going to park them in the bank just to have their purchasing power be chipped away by inflation? Will you be investing them into something as historically safe that will be giving you a higher return on investment than what your rental property would have garnered? Don't be that investor that looks back in 5-10 years that says "I wish I would have kept that home". I'm here to help you analyze and give you the numbers on your property so that you can make the informed decision that you are actively searching for! Reach out anytime.