Do you need to sell your investment property in Oklahoma City? In our latest post, we offer ways to know it’s time to sell as well as the options available to you! Keep reading to learn more about our 4 signs its time to sell your investment property in Oklahoma City.
Investment property is real estate acquired with a view to receiving a return on investment, either by rental income, potential resale of the land, or both. The property can be owned by an individual investor, an investor group or a company.
Purchase property may be a long-term project or a short-term investment. For the latter, buyers will also participate in flipping where real estate is purchased, remodeled or renovated and sold for profit within a small time frame.
The term investment property can also be used to describe other properties and investor purchases for the purpose of potential appreciation, such as art, shares, land or other collectibles.
Investment properties are those that are not used as primary residences. They produce some sort of income — dividends, interest, rentals, or even royalties — that fall beyond the scope of the normal business line of the owner of the land. And the way the investment property is used has a huge effect on its value.
Investment properties are also referred to as second homes. Yet the two do not necessarily mean the same thing. For example , a family may purchase a cottage or other holiday property for their own use, or someone with a primary home in the city may purchase a second property in the country as a weekend retreat. For these instances, the second property is for personal use — not as income property.
Types of Investment Properties
Real estate is one of the oldest and most common asset classes in the world. Many new investors in real estate know this, but what they don’t know is how many different forms of real estate investment there are.
Residential facilities are properties such as houses, apartment buildings, townhouses and holiday homes where a person or family charges you to stay in the property. The length of their stay is dependent on a rental or lease arrangement. Many of the residential leases are on a twelve-month basis.
Commercial properties consist primarily of office buildings and skyscrapers. If you were to take some of your savings and build a small building with individual offices, you could rent it out to businesses and small business owners who would pay you rent to use the space.
This is not uncommon for commercial real estate to require multi-year leases. This will contribute to greater consistency in cash flow, and also protect the owner when rental prices decline. One concern is that markets fluctuate and rental prices may rise dramatically in a short period of time. Nevertheless, it might not be possible to raise rates if commercial property is locked in older agreements.
Industrial properties usually include buildings used by businesses to produce, store, and distribute their goods. The majority of commercial real estate investors are highly qualified with broad investment portfolios. Buildings are big, costly, and the needs of the tenant can change with a blink of an eye.
Mixed-use property may be used both for industrial and residential purposes. For example, a building may have a retail shop on the ground floor, such as a convenience store, bar or restaurant, while the upper part of the building houses residential units.
4 Signs its Time To Sell Your Investment Property in Oklahoma City
While owning real estate is one of the best ways to generate extra income, not every property is going to be profitable. Many investors hold on to properties far longer than they should, completely negating any profits they had made in the past. If your investment property isn’t performing as you would like to, maybe it’s time you consider selling it for something else! Below you will learn more about our 4 signs its time to sell your investment property in Oklahoma City.
Negative Cash Flow
Investment properties will always have their ups and downs. It’s part of being a landlord. Look for patterns. If this is a regular occurrence, it might be best to hold on through the slow period. But if you are consistently seeing negative cash flow or if you are having trouble retaining high-quality tenants, it might be best to cut your losses and walk away. Nowhere does it say that you need to hold on to your rental property forever. There are better investments out there, and using the cash from your underperforming rental is a great way to change your situation.
While it sounds like a drastic solution, it’s still an option. Upon evaluating all the reasons and potential remedies that you have at hand when you feel like they are ineffective, selling a negative cash flow investment property might be the best choice. Keep in mind to find an individual or company that specializes in the type of properties you have.
Difficulties In Distance
Being a remote landlord can work for some people. But in some cases, paying a property manager can be expensive and handling things on your own can be next to impossible. Property showings, tenant screenings, checking on the property, and building a relationship with your tenants can be difficult when you aren’t located nearby. Only in some situations are a landlord and tenant able to live far away without the use of a property manager. Many times, these relationships are possible because the landlord and the tenant knew each other previously or through a friend.
Long-distance real estate investment comes up with its obstacles, to say the least, and if you are a beginner real estate investor, we highly recommend that you save where you stay for your first rental property. Remember, we ‘re not specifically suggesting that long-distance partnerships are doomed to failure; some of them survive and conquer the hurdles. The same applies to long-distance real estate investment: certain long-distance real estate investment will function and yield high returns if and only if it is carried out correctly and with the right investment property management team.
‘Invest where you live.’ You’ve probably come across this phrase if you’ve been in the real estate industry for some time.
The Value Has Jumped Significantly
If you are able to resell the house for a substantial profit, it might be in your best interest to do so. While you could be collecting rent each month, slowly profiting over time, there aren’t any guarantees you will be able to retain high-quality tenants for the long-term. You may run into vacancy issues, the rent prices in your area may fall, and the overall value may drop before you decide to resell down the road. If you have the opportunity to resell the property at a significant profit, it is something you will definitely want to consider.
Another important aspect to consider when deciding whether to rent or sell your home.. What do the next five, ten, twenty years look like for the place of your property? Are things going to improve? Is your community going to decline in value? If the future looks dark, consider selling now to prevent problems later.
It is not difficult to try to measure where the demand is heading. Take a look at the development of your city — is it heading away from you or towards you? Are businesses going to come into your area? Were the houses fixed or left to rot? You can’t say with 100 % certainty, but by evaluating current developments in your business, you can make a more informed decision as to whether to hold on or sell.
Maintenance Costs Are Rising
As the house gets older, it will likely cost more to maintain it. As you see your profits diminish and your repair bills grow, you need to ask yourself if this pattern will continue. Having to fix one thing after another can be extremely costly and frustrating. Not only can the maintenance get expensive, but the time and stress caused can be overwhelming for Oklahoma City investment property owners. Your investment should be a sense of pride and generate income for you and your family. Property in any other state may be more trouble than its worth and a great candidate for a resell.
A DIY solution would certainly save you money as long as you’re handy enough to perform certain tasks. Yet frankly, you have to ask yourself, “Are you handy enough? “If you don’t, you’ll end up doing more damage than good.
In addition to being able to do a job, there is a question about whether or not it is worth the time to do a job. It might make more sense to hire someone else to do it for you. What a positive thing is your extra money, if the expense is your quality of life. Because remember, it’s just as important to do the right thing to your tenant as it is to do the right thing to yourself. If you doing the job means making your tenant wait then it’s not worth it.
Do you own an investment property in the Oklahoma City area that you wish to sell? Let’s work together to run the numbers! Find out if you should keep the property, sell it directly, or hire an agent to help you! You have options when selling your Oklahoma City investment property, and we are here to help!
Is it time to sell your investment property in Oklahoma City? We can help you explore the options available to you! Get in touch with us today to learn more! 405-395-2085
Local House Buyers in Oklahoma City is a premier house buyer.
Visit our website:
Call us at 405-395-2085
Visit our social media channels below to see more great videos and testimonials of how Local House Buyers is helping people just like you who need to sell their Oklahoma house now.
Ways you can reach us are:
Please like follow and subscribe if you love what we are doing.
#1 Call Us @ 405-395-2085
#2 You can go to our website and see our testimonials by going to https://www.sellyouroklahomahouse.com/testimonials/
#3 You can go directly to our website here @ https://www.sellyouroklahomahouse.com/
#4 You can visit us on Facebook @ https://www.facebook.com/LocalHouseBuyersOkc/
#5 Twitter @ https://twitter.com/lhbokc
#6 Linked in @ https://www.linkedin.com
#7 Instagram Handle @ https://www.instagram.com/lhbokc/
#8 Pinterest @ https://www.pinterest.com/