Property Management Companies – Property Manager in Tampa, Florida
Property management company made Inc Magazine’s “Inc 500 List” for the 500 fastest growing, privately owned companies in America, in 2004 and 2005.
Selling Rental at 10 years or less, you miss the real upside and significant profits.
As an owner of a Riverview Property Management company, I've noticed the tendency of rental property owners to sell in 10 years or less.There can be a lot of valid reasons to do this such as the property has appreciated enough to sell for a good profit, you have need for the profits you would receive, or you don't want to lose out on the profits already earned by hitting a severe recession.
As a Riverview Property Manager, I'm often asked by my clients my opinion of whether to sell or not. I always reply that it depends on your situation.If you really need the money for something, then selling can make a lot of sense.
The point is the real money is made in the long term.Most people don't really consider this because the calculations above or not in anyone's mind.We all understand the mortgage will pay down but haven't done the math to understand the total impact of appreciation, depreciation, and rent growth.I know this numbers are boring but the "devil is in the details."
I must remind myself of this math constantly throughout my investing career.I own several rental properties where I've been paying down the mortgage 10 to 15 years at this point. Somewhere around the 7-10-year mark is when rental properties really start making you money.At the 20-30-year mark they make you a fortune, if you can hold on.Food for thought.
PS Keep in mind you put down $10,000 to make $447,513 in potential profits at 30 years.Now I know you had costs at closing and selling but let's assume the rent growth paid for all that and your original down payment.Not a bad return.
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Selling Rental at 10 years or less, you miss the real upside and significant profits
By Property Management Companies – Property Manager in Tampa, Florida
Selling Rental at 10 years or less, you miss the real upside and significant profits
As an owner of a Riverview Property Management company, I've noticed the tendency of rental property owners to sell in 10 years or less.There can be a lot of valid reasons to do this such as the property has appreciated enough to sell for a good profit, you have need for the profits you would receive, or you don't want to lose out on the profits already earned by hitting a severe recession.
