Many rental property owners are smart enough to let the passive income from their tenants go towards their mortgage, effectively allowing them to pay for the house. But at some point holding onto the same rental property isn’t the best idea, and it’s always a good idea to weigh your options Lets go over the tell tale signs that notify you it might be time to sell.
Change in Evaluation.
Perhaps you can now get more for this property than you bought it for. The rent you are charging your tenants may be good enough, but if the market is particularly active, selling may be a much faster way to grow your wealth, especially if those dollars could be doing more work elsewhere.
It’s Time to Trade Up
In this case, the amount you will sell the property for will be enough for a large down payment on a larger and more profitable property with more units and tenants.
Change in Life Circumstances.
Sometimes the change that brings about a sale isn’t always under your control. Whether it be the birth of a child or unexpected medical expenses. It’s usually a better idea to sell a rental property than put yourself in debt.