Investment property can be tricky. And especially so in an uncertain economy.  And We are all wondering when interest rates are going to head back up  and what kind of dramatic effect that baby will have on income property sales. Nevertheless there are a few astute investors out there that have taken the bull by the horn and cashed in on the benefits of owner financing.

Good gosh ...when CD's are paying less than 2% and money markets in the fractions of a point and the stock market is volatile what is left that is safe and particularly so for retired individuals on fixed incomes. The last place you want to store that money is in a mattress.

I know several individuals that are in their late 70's and some in their 80's that own and manage rental property including single family homes, duplexes and fourplexes. A few  of these folks take care of light maintenance and general repairs themselves. I think it is great that they are doing this and especially so since they save dollars and get in a little needed exercise all at the same time.

But there reaches a point when the responsibility may begin to be more of a burden than a necessary and sometimes welcome event. This is  when it may be time to consider selling some or all of your rental property. 

There may be several advantages to selling right now.

1.The capital gains tax rate of 15% for individuals expires in 2010! Will it be renewed? We don't know. But given the state of the economy I will stick my neck out and say NO.   That in itself could be a motivator to go on and sell now.  Oh i can remember some high rates a few years back...they were a real killer!

2. Owner Financing. If you sell a rental property right now and have little or no current debt on it .....well what will you do with the profit? Will you reinvest or why not consider in owner financing? The advantages of steady monthly income with someone else paying for taxes, insurance, and maintenance could be a blessing. Also you can structure the loan to accomodate you life situation. Get a reasonable downpayment.  Structure the terms of the financing to ammortorize over 20to 30 years and have it balloon (come due) in a shorter period.  Many of us may need more disposable cash as we approach our latter years and require increased medical care and expense.

3. More Free Time! time to enjoy grandkids and great grandkids. Time to fish, time to garden and time to travel.  Most of all ....Time to spend with friends  and family instead of behind a paint brush or calculator!