Selling rental property for cash: Here’s what you need to know
There are many reasons you might consider selling rental property. You can’t afford the repairs required to maintain the property or comply with code violations. You want to sell property because you need cash. You’re moving locations. Property taxes and insurance are too high. Regardless of the reason, here are several things to consider before you sell:
You didn’t want the rental property in the first place.
You inherited a rental property and rather than being excited, your first thought was, “How do I sell my rental property?” It’s more common than you think, and selling the property allows you to benefit from the inheritance without the responsibilities and costs of renting out the property.
You can’t afford necessary repairs.
It can be difficult to keep up with repairs on a rental and it’s never a good idea to simply forego essential repairs. Landlord-tenant laws vary by state, but in Missouri, tenants have the right to withhold rent if a landlord ignores or refuses repair requests, or to repair themselves and deduct the cost from their rent. If you get over your head and find yourself unable to afford repairs, then selling your rental property quickly is one of the best ways to cut your losses—and get a windfall of cash.
You are either retiring or changing career paths.
Whether you’re retiring for good, or simply want to cash out of being a landlord, then selling your rental property might be the right choice for you. The cash you’ll obtain from the sale can go right into your retirement fund or towards funding your next business venture.
You’re moving far away from the rental property.
Renting out a property in Tower Grove might grow to be difficult if you’re moving to Sacramento. In this instance, selling rental property might be prudent unless you want to coordinate lease agreements and repairs by phoning it in. If you’re in this position, you might benefit from Section 1031 by selling your St. Louis property and buying ”like-kind” property in Sacramento, allowing you to defer capital gains taxes.
We buy rental properties—quickly and for a fair price. If selling your rental property seems like the right fit for you, then give us a call.