Q&A: What’s the Best Way to Sell a Rental Property? – Episode 871

If you have an occupied rental property, what’s the best way to sell it? Is it better to wait until your lease ends, or should you try to sell the home with a tenant in place? That’s the first question I’m answering on this Q&A episode!

This episode of Investing in Real Estate features three great listener questions. We’re talking about selling an occupied rental property, what to do when you have negative cash flow, and how to decide the best way to fund an investment. Press play to hear my answers to your best investing questions!

On this episode you’ll learn:

• How to sell an occupied property.
• How to turn negative cash flow into positive cash flow.
• Tips for funding your first rental property.

How to Sell an Occupied Rental Property

Choosing to sell an occupied rental property can be confusing, especially when you have a great tenant living in the home. In this situation, I would advise you to first consider your goals. What do you need out of the deal? Are you trying to sell as quickly as possible, or would it be best to maximize your profits?

From there, hopefully you can make a more informed decision. I’d also suggest reaching out to a real estate agent in the area to discuss the current market and neighborhood conditions. Ask if the zip code consists of mostly rentals or owner-occupied properties. You may also want to consider a rent-to-own situation with your tenant.

How to Turn Negative Cash Flow Into Positive Cash Flow

The first thing I would consider in this scenario is your property management situation. Are you self-managing the property, or do you have a great team in place? I always suggest working with an established and proven property management that can ensure your property is rented.

Another thing to assess is the state of the property. Can it be updated? Do you need to lower the rent? Again, if you’re working with a great property management team, they should be able to help you get to the root of the issue. If not, it may be time to hire a new company to ensure positive cash flow.

Tips for Funding Your First Rental Property

At Morris Invest, we don’t believe in a one-size-fits-all approach to real estate investing. What works for one investor might not be right for the next. Using a credit card to invest can be a great option, and investing with a 401k can be awesome too! It all depends on the terms, interest rates, and your personal situation. You might have some funding options available to you that you hadn’t considered. My team would be happy to help you narrow down your options and decide what your best route is. You can schedule a free call at morrisinvest.com.

Ask Me a Question at morrisinvest.com/clayton

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