How to Sell Your Rental Home?
Having a rental home is the holy grail of passive income and revenue streams. Moreover, it sets you free like a bird financially.
There are some “gurus” out there who promise and tell you a lot about buying homes and creating positive cash flow in your life so that you can easily quit your job, sip mojitos on a seashore and live the life you have always dreamed of.While all of those self-professed experts share amazing success stories with you, they failed to mention the people who did get started but blazed out.
But, you know what when it comes to real estate, getting started is the kind of advice that creates a lot of problems. There are a lot of posts about buying a rental home, and almost none about selling.
Today, I am going to identify some of the reasons you may find interesting to sell your rental home and a few different marketing strategies for selling.
First, You Need To Understand That Why You Need To Sell.
The first thing is to determine your exit strategy, and that is to understand your needs for selling. Ask yourself, why you need to sell this rental home?
Selling a rental home can be a challenging task depending on your situations. It could take weeks or moons to sell. Moreover, these are all tax and business implications. Plus the headache of needing to sell your home while it’s being occupied by your tenant.
Sell Your Rental Home Quickly
A bad deal is a bad deal, and there is no way around it. Investors are afraid of their losses. They hold a house in the market for additional four months and try to get the highest selling price because they believe that they can minimize their damage. But, this eventually ends up hurting them. They start making emotional decisions which are often more harmful.
Therefore, to avoid a bad deal, you can simply offload it as soon as possible and take your losses. Hire a real estate agent to create a master strategy, and that is “OFFLOAD LOSS STRATEGY. A well-known strategy to sell your rental home when certain conditions occur that creates a bad deal.
Sell With A Tenant
In case you are not lucky enough to be able to wait and sell the home without a tenant, you will have a massive challenge in front of you. This can kill you emotionally if you are already running a negative cash flow since it’s almost like you are paying them to live in your house.
That’s why it’s important to have an exit strategy from the beginning. If your rental home has some tenants and you need to sell, you have a few options.
- Wait until lease expiration.
- Sell with an active lease.
Sell Your Home To The Tenant
Having a long-term tenant is a great option. Make an offer to sell your home to the tenant. They can secure their financing, or you could provide seller-financing.
#ProTip: Seller-financing is when you lend tenant some money. We recommend you to do this often; you will need to own the home free and clear.
The Bottom Line
Getting started is not the only solution. You need to relax and consider your plans before jumping in. Otherwise, you might fail. We recommend you to have a solid exit plan and unique strategies.