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
Book a Call with Our Team
How to Pay Off Your Mortgage in 5 Years
West Texas Blog Post
Download the FREE Financial Empowerment Bootcamp
Download the Freedom Cheat Sheet
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Ready To Build Passive Income Through Rental Real Estate?
Ready to talk about your goals? We're here to show you the tools and teach you the process to begin earning legacy wealth for you and your family.