Rent vs Buy in Plainfield>Question Details

Harry, Home Owner in Shorewood, IL

Is it better to sell your rental property or hold on to it?

Asked by Harry, Shorewood, IL Mon Feb 27, 2012

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11
depends on the economics or do you have to, you making money, you want to retire, these are all things
you have to consider you
0 votes Thank Flag Link Fri Aug 23, 2013
Do you need the money ? Do you want to sell and buy another more expensive home ? Are you afraid values have come down ? Sit down with a tax professional and with a local agent.Then decide whether you want to hold or sell.
It is actually a good time to buy investment properties in many areas as rents are going up and prices are low.
It will depend on your reasons for selling.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Tue Feb 28, 2012
Harry,

Passive income is the best kind of income. There are many people that can only dream right now of being in your position. If your situation allows you to hang onto the property, I recommend doing so. But like many have said already, it really depends on your situation and your desire to continue the work required of landlord.

Thanks,
Jerry
0 votes Thank Flag Link Tue Feb 28, 2012
If the property breaks even every year or cash flows then it should be a great long term asset. If the property is costing you money every year and you have enough equity to sell than it might be a good idea. You should consider where your cash generates the most return on investment. If you bought during the bubble it might not be a good invest, but you could sell and use that cash for another property that has better ROI and TROI. Contact me if you have any questions. Jeff Donnellan 630-362-8921. Jeffdonnellan@gmail.com
0 votes Thank Flag Link Mon Feb 27, 2012
Harry -

You need to sit down with your accountant or your calculator and assess what you have into the property, what you can sell it for and assess the income vs. the costs to keep it, including property taxes, maintenance and income taxes. Then you need to assess the intangibles of being a landlord. Fiscally, right now the prices to sell are going to be lower than in the future and rents are extremely high right now. So as long as you are making money and have happy tenants who pay, you may want to consider keeping it.
0 votes Thank Flag Link Mon Feb 27, 2012
Hi Harry,

It's a question that only you can answer. As my colleagues have said, a lot depends on your situation.

1. What are your reasons for selling right now?
2. If you financed the property, will a sale bring you enough to cover the outstanding balance?

I think those are your first two big questions to answer. If selling is the result of those answers, then talk with your tax accountant and make sure that side makes sense.

Do a pros and cons list. Then, if you're looking to sell, consult a Realtor to get market information and a great marketing plan.

Best,
Michele Nixon
Web Reference: http://www.michelenixon.com
0 votes Thank Flag Link Mon Feb 27, 2012
what is your overall goal...to create passive income? It would depend on your goals and plans.
0 votes Thank Flag Link Mon Feb 27, 2012
That's a good question for your accountant. There are so many variables. Of course, you'll need to know the market value of the property.
0 votes Thank Flag Link Mon Feb 27, 2012
Hold onto it and rent it out!
0 votes Thank Flag Link Mon Feb 27, 2012
The name of the game is ACCUMULATING ASSETS and holding them for the LONG TERM.

If your rules change, that is something else.

Good luck and may God bless
0 votes Thank Flag Link Mon Feb 27, 2012
Wouldn't you think that sort of depends on a lot of things?
0 votes Thank Flag Link Mon Feb 27, 2012
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