The real estate market is in a place where demand is far outpacing supply and prices are high. Portland real estate has always been competitive, and right now median list prices are more than 11 percent higher than they were at this time last year.
It’s tempting to cash in on current market conditions if you own a Portland investment property and you’re ready to do something else.
Knowing when to sell is an important part of a successful investment strategy. It really depends on your unique investment goals and what you’re hoping to accomplish with the property over the short term and the long term. If a particular rental property no longer fits into your strategy as a Portland real estate investor, it might be time to let the asset go. If there’s still more money to be made from it, however, you can consider upgrades or refinancing in order to earn a bit more cash flow.
Sell When the Portland Real Estate Market Cooperates
Feeling pressure to sell your Portland investment property when the market isn’t great can be frustrating, so it’s important to watch the market carefully and make decisions based on how it’s performing. It’s not always easy to get the price you’re hoping for when you list your property for sale, so if the Portland market is in a position to give you what you want, it’s an excellent reason to sell.
Owners with a lot of equity in their investments can sell and walk away with quite a profit. This money can be used to fund big plans or different investments. In a hot market like the one we have now, there’s really no need to hesitate if you’ve been planning to sell. Why wait for the next downturn? Sell when there’s money to be made.
Evaluate the Location of Your Investment Property
Location plays a big role in what you can earn on your investment. Is the property still in a desirable neighborhood for good tenants, or has it become more commercial over the last couple of years? Maybe there have been disruptions in the area or a drop in economic growth that’s making it more difficult to earn what you want in rent. These are good reasons to sell your property.
Study the impact of the local economy on your rental property and take note of changing tenant demands and demographics. You might see trends that tell you it’s time to sell.
Higher Maintenance Costs Can Nudge Portland Investors Towards Selling
When the maintenance and repairs required on your investment property are adding up faster than the income you’re earning on the property, it could be a good signal that it’s time to sell. It doesn’t make a lot of sense to continue spending money on maintenance and repairs that aren’t yielding any ROI. The better option may be to sell that property and invest in other Portland rental homes that are in better condition and cost less to maintain.
Don’t sell the house just because a minor fix is needed, however. If the investment is still in excellent condition you may simply need to make some improvements and renovations. Measure the cost against the benefits. If the repairs are frequent and the house requires more of an investment than you’re willing to make in order to keep it habitable and attractive to prospective tenants, you should probably let it go and sell.
Portland Property Management Can Help
Think about whether you really want to sell or whether you simply need some help.
We work with a lot of investors who thought they wanted to sell but then realized they simply did not want to spend the time or manage the headaches of leasing, managing, and maintaining a Portland rental property.
If you don’t want to sell the property but you also don’t want to manage it, hand the responsibilities over to a professional Portland property management company. We’d be happy to tell you more about our own service plans, and we can also talk through whether this is the right time to sell your Portland investment. Contact us at Performance Properties.