It is nice to let a renter pay your monthly mortgage. However, sometimes selling your San Diego rental property is better than holding onto it. You may have seen in another Priority One blog post that San Diego is currently in a seller’s market. Besides that, here are my four top reasons to sell that investment home.
Selling Your San Diego Rental Property and Buying Something Bigger
Why not sell your property and buy something bigger? Bigger is better, right? And, you can sell your current property and do a 1031 exchange, postponing capital gains taxes. This is a great way to accumulate wealth for you and your family and your future family. Make sure you talk to a tax professional or read up on all the rules associated with 1031 exchanges. As we all know, the IRS does not make anything easy.
Cash Out Your Equity
Your San Diego rental property is probably worth some money. If the market is nearing its peak and you want to get out before prices drop, take your money and run. Invest your cash in different markets like stocks, bonds, or crypto currency. Or, take the cash and go to Tahiti for six months. Do what you want, because prices are at an all-time high. You can get out before it’s too late.
Let Go of Rental Property Stress
Owning rental property causes a lot of stress. There’s nothing like being a rental property owner and always being on call. Water heaters can leak in the middle of the night, or a washing machine hose can burst on the weekend, flooding your property. If you sell your property, you won’t have to worry about late night calls or expensive repairs.
Releasing Negative Cash Flow
Maybe you were negative after paying your mortgage, HOA dues, taxes, and insurance. As we all know, owning rental properties is not cheap. If you cannot afford repairs and upgrades, it may not be worth it to keep your property as a rental. Don’t put a drain on your monthly budget.
These are the four benefits to selling your San Diego rental property. If you have any questions, please contact us at Priority One Real Estate. We would be happy to help you with San Diego property management or sales.