Do you own an investment property in Baytown or in any of the surrounding cities? If you do then you may want to consider selling. Although many investors have the understanding that holding their investment property is always the best strategy, there are current market indicators that are supporting those investors who are open to change. Overall, investors who are holding onto their investment assets may be leaving money on the table. Here’s why:
Use Your Equity to Increase Your Cash Flow
Leveraging your current investment property to increase your cash flow can improve your financial position. By selling your current home and reinvesting in either a larger, single family home, or a multi-unit building such as a duplex or triplex, you can increase your cash flow. You can use the cash received from the sale of your current investment property as a down payment and take advantage of the low interest rates to acquire a loan on the new property.
Another option that many consider is refinancing their current investment property to purchase a second property. However, there is a major pitfall in this plan that many overlook, and that is the hassle of managing two properties in separate locations. By consolidating your properties onto one lot you can reduce the time it takes to manage the properties.
Do a 1031 Exchange
By participating in a 1031 exchange, you can leverage the equity in your current investment property and trade into a larger one without paying capital gains taxes. A 1031 Exchange, which is defined under section 1031 of the IRS Code allows investors to defer paying capital gains taxes on an investment property when is it sold and another “like-kind property” is purchased.
Take Advantage: We are in a Seller’s Market
Don’t miss out on the current opportunity – we are still in a seller’s market. This means that due to increased demand and limited supply you can receive a premium on your home. Wait any longer and the market could shift, reducing your return on the sale. You may be wondering how you will be able to buy the next property if it is a seller’s market. This is simple: Thanks to the cash you will have at hand from your current home, you will have maximum leverage to negotiate on your next purchase. Furthermore, if you are considering investing in an alternative asset, such as a commercial real estate property (apartment complex), the market has different demands. With the right buyer’s agent you will most likely be able to improve your position.
Move to a Stronger Market
Economists are predicting that in the next nine to eighteen months the market will start to take a hit, and this includes the real estate market. This means that any property owners need to start preparing for the long term; if they are considering selling in the next ten years, they should execute now. If they wait, they could risk entering a recession, which could then take years to recover from.
In this instance, moving to a stronger market can be the solution for any investor. For example, purchasing in Houston could prove to be an intelligent decision. More people are moving into the cities for job opportunities, which increases rent and demand for rental units. Moving to an urban market provides more security in economic uncertainty.
Get Out
Maybe it is just time for you to get out of your investment property. Are you currently experiencing more stress than reward by managing your property or properties? Do you have tenants that are no longer worth the worry? Are you facing foreclosure on the property? Is the property vacant? Are you entering retirement and looking for less work? If you answered “Yes” to any of these questions, then getting out of the investment may be your best option.
Sell, But Don’t List
Many investors avoid exchanging or selling their investment assets because they don’t want to hassle with selling their property on the market. We have a solution that will help you forego this process…Sell to us, Gulf State Homebuyers. We are investors located in Baytown who are interested in buying your property. We buy homes in all conditions and as-is. This means that as the owner you will not need to hire any contractors, real estate agents, or appraisers. Instead, we do all the work. Our process is simple. Once you contact us, we will set up a time to walk the property. We will then have one of our qualified staff meet you and they will give you an offer that same day. No obligations. No hassles. No fees. If this is something that interests you, call us today to get started.
