To sell or not to sell? This is one of the age-old questions of investment real estate, and finding the right time to sell your property can be an agonizing decision. After all, choosing when to sell an investment property can be just as important to your success in real estate as your decision to purchase a property in the first place.
Jason Hartman knows that not all properties are the same, and that timing is everything. Remember: patience when selling an investment property can be your most valuable virtue and your secret weapon.

Factors to consider when selling:
Trust your instincts: Anyone who has experience in real estate can tell you a story about “Coulda, Woulda, Shoulda.” There are times we wish that we would have sold a property sooner, or held onto it for a little longer. But there is no shame in trusting your gut. Sometimes, all you can do is step up to the plate and take a swing.

The buy and hold strategy: Jason Hartman likes the long-term buy and hold strategy. He has been quoted saying, “generally speaking, people who buy and flip have spending money but people who buy and hold have real wealth.” So long as everything else makes sense, Jason favors letting the full 27.5-year depreciation schedule run out before selling. This is where patience and intuition are important. Changes in supply and demand, taxes, or even insurance could be causing your cash flow to fluctuate. Evaluating the area thoroughly can help you make an informed decision about whether selling is worth it. Despite periods of volatility, your property will yield greater returns if you choose to hold onto it, rather than flip it in a moment of panic.

Evaluate your portfolio: If you have more than one investment property in your portfolio, it’s important to reevaluate where they fit in relation to each other and in your overall business plan. If a property is losing money and you decide to cut your losses and sell, will you be able to make up for it in other areas? Could you make a higher return investing your money somewhere else or putting more money into another rental property?

Jason Hartman understands it’s hard to know if you’re doing the right thing. Rental income can be a real estate investor’s best friend or worst enemy. But buying or selling a property doesn’t have to be a shot in the dark. Evaluating your cash flow, studying the local market, and trusting your instincts can help you make the right decision (Top image: Flickr | Ian Muttoo).

The AIPIS Team