Should I Sell or Keep my Rental Property?

Рет қаралды 10,369

Күн бұрын

⭐ Join Rental Property Mastery, my coaching & learning community:
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🎙️ Episode 330 - Coach and Erion share insights on recognizing opportune moments to sell, such as peak property value or declining quality, and discover poor reasons that may lead to suboptimal outcomes. Whether navigating market fluctuations, evaluating replacement opportunities, we’ll equip you with a strategic approach to maximize the potential of your real estate investments.
📄 Show Notes: www.coachcarson.com/sellorkeep/
▶️ Next Video: How Much Tax I Paid When I Sold a Rental Property
• How Much Tax I Paid Wh...
🎬 Timestamps:
0:00 - Intro
00:41 - Rental Property Mastery
01:30 - 3 Good Reasons to Sell a Property
08:21 - 3 Bad Reasons to Sell a Property
15:15 - Checklist For Determining Whether to Sell a Property
18:22 - Conclusion
🔗 Connect with Erion Shehaj:
Erion's Twitter: / investarchitect
Erion's Website: www.signaturehouston.com/
Erion’s LinkedIn: / erionshehaj
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Footage and photos credit to: Pexels.com | Pixabay.com

Пікірлер: 52

@zionrose007 4 ай бұрын

Coach what I appreciate about you the most is your wisdom and giving us guests with content that's easy to digest!

@CoachChadCarson 4 ай бұрын

Thank you for the kind feedback! I appreciate you watching.

@WyattBorden 4 ай бұрын

It’s refreshing to hear from Erion. You can tell he’s been in the trenches for years and talks from experience. This topic is not talked about often in Real Estate content spaces.

@CoachChadCarson 4 ай бұрын

That's why I enjoy talking with Erion. Hard earned wisdom is easily recognizable over newbies posing as experts.

@BrettFarr Ай бұрын

I appreciate the return on equity exercise. He's right, I've always done return on cash, but return on equity paints a different picture. Thanks!

@CoachChadCarson Ай бұрын

Glad it was helpful! Thanks for watching.

@sameid887 2 ай бұрын

Was ready to get rid of a building i own that has no mortgage! Now i changed my mind 😊

@CoachChadCarson Ай бұрын

Love it!

@JohnKConway 4 ай бұрын

Great episode Chad! Erion is one of my favorite guests on your channel. The comment about "Don't sell just for the dopamine rush" really resonated with me. What I would love to see is a comparison of ROE in a mature real estate portfolio vs. an index fund. Paula Pant should be your guest. I like Paula because she has both Rental Properties and Index Funds. ... and you have a "Small and Mighty" portfolio. Let's compare these two types of investments. Stocks vs. Mature Rental Portfolio (maybe a rental with no debt). PS. John Schaub is my second favorite guest of yours. But Paula is great on air. Get her on your show!

@enfoquefitnessyfinanzas3976 4 ай бұрын

Omg. I’ve been praying and doing the math on whether we should sell or keep the property this video came just on time. I would like a 2nd opinion🙏

@CoachChadCarson 4 ай бұрын

Glad it was helpful! It's not an easy decision but I hope it gives you some ideas.

@MrSkunks 4 ай бұрын

Reason number one for selling - Too much equity. What would be the argument against a HELOC against that equity to buy another rental, vs selling and dealing with a 1031. Assume you have a property worth $500k, you owe $150k, and can take a HELOC at 80% LTV. Reason 1 is not return on equity, but what if you can pull that out, make more and avoid the headache/pressure of a 1031? Now you have 2 properties appreciating vs 1

@InvestingArchitect 4 ай бұрын

Heloc is definitely an option if you don’t want to sell. The potential arguments against it would be: 1) high interest rate on the heloc 2) variable rate in a high volatility environment and 3) being able to only use a fraction of your equity.

@DionTalkFinancialFreedom 4 ай бұрын

Love it. Thanks.

@mr.swagily2659 4 ай бұрын

Beautifully done video so straightforward 👏

@CoachChadCarson 4 ай бұрын

Thanks for watching!

@gfoster173 4 ай бұрын

Thanks Coach.

@pbdmd3688 4 ай бұрын

🎉❤Love hearing two masterminds Coach and Erion. You may not know me but I have gathered lot of knowledge from you guys wisdom. Tbh I never thought of this aspect of selling your rental properties. Currently have 3 single family quality homes renting $2100-2200 range. 4th SFR coming up in June.

@CoachChadCarson 4 ай бұрын

Glad to hear it was helpful! Congrats on your properties..

@jayc4715 4 ай бұрын

I listed one of my rental properties for sale reason being..its appreciated in value...and i feel it has features that make it a more desirable home but at the same time a less desirable rental property,(( a huge yard,a water well,rural area))

@CoachChadCarson 4 ай бұрын

Makes sense! Thanks for sharing

@AOLnotas 2 ай бұрын

I have two options 1. Sell pay debt and buy two houses. 2. Don’t sell keep renting get a heloc to Lowe the interest rate in my credit cards…. 🤔🤔🤔

@shauntelcampos3212 Ай бұрын

I personally keep my investment properties completely separate from my personal finances. I recommend finding another way to pay off your credit card debt and then never going back in it. What’s the point of having an investment if you just use it to pay down a bad decision to go into debt. Tackling the debt separately will hopefully help you make difference decisions in the future regarding your credit cards. I say this because I went through the same thing. Ultimately I kept my rentals and found other means to reach separate financial goals.

@user-pt2vp6ze3k 5 күн бұрын

👍🏻👍🏻@@shauntelcampos3212

@Matt-qj6cr 4 ай бұрын

Great episode, Coach! This is exactly what I needed as I navigate through market fluctuations. It seems like all the experts focus on starting out or the positive aspects of real estate investing, but none of them delve into the challenges or failures they faced on their investment journey. Many of us jumped in during or after Covid, and we're struggling with rising interest rates, increasing insurance costs, and more. It would be helpful to see more videos like this, providing hope that enduring the downsides leads to a light at the end of the tunnel. Thanks again for the insightful video, and I look forward to more content like this in the future!

@CoachChadCarson 4 ай бұрын

very helpful feedback. Thank you Matt! And I appreciate you following my channel. Best of luck with your next steps.

@pbdmd3688 4 ай бұрын

Hi Coach Is 1st lien HELOC available and allowed in Texas? I have 2 primary and 3 investment properties in Dallas TX. I would like to explore it for sure.

@joeybarbosa9812 3 ай бұрын

Do you have a strategy to invest cashflow into existing property build out for the purpose of 1. tax strategy; 2. expand rental portfolio; 3. increase equity. All of my properties allow more unit buildout - looking at buildout vs 1031.

@davidstephens9594 4 ай бұрын

Very good and insightful conversation, Coach Carson! I ponder this with my portfolio and think about the return on equity. I have some properties that are growing in equity faster than rental growth that I think about selling, but I start thinking about the continuing growth in the years to come and how its a savings account that will likly continue to grow so I usually talk myself out of selling even though the property is not a great cash flow in today's market.

@CoachChadCarson 4 ай бұрын

Yeah, it's counter intuituive because cash flow is more measurable. but a good property in a good market can make you wealthy if you just hold on

@madelineperello1046 3 ай бұрын

@coachchadcarson, would you consider a property that has doubled in price from $260k to $520k in the past 7 years, but only cash flowing $200 per month a keeper? Class A neighborhood, but the lack of cash flow is nagging at me .

@forrestgreen2348 4 ай бұрын

All the education is how to get properties. What I need is now that I have a bunch what’s the best to do with them ! Good content

@CoachChadCarson 4 ай бұрын

Agree! That's what I am trying to focus on more on this channel. Going from building wealth to using your rentals to live

@Dbb27 3 ай бұрын

I sold off a couple and paid off mortgages. But, with prices, current rents and increased value I think perhaps it wasn’t the way to go. Whatever, it’s working fine but I am thinking about selling my last two properties. I just can’t see where I can make the money I am making with my properties.

@ginacardarella 4 ай бұрын

Unfortunately for me I would love to sell my units. But I can't get the cash flow in properly And i've been looking in different states even

@CoachChadCarson 4 ай бұрын

Good luck!

@MrSethmo13 4 ай бұрын

Coach, thank you for the video. While I don’t ever intend to sell any of my rental properties, it’s good to have this video as a resource in case I ever change my mind. One question does occur to me that I wish you would’ve asked, it is as follows: What if you have a good reason to sell (for example, the neighborhood is going downhill and the type of tenants you are attracting are subpar) but as you are preparing to sell, a bad reason rears its ugly head (market fluctuations arise causing a drop in home values). Which rationale should take precedence over the other? Should I wait it out and deal with a crumbling neighborhood and undesirable tenants? Or should I ditch the property as soon as possible to avoid the problems of a crumbling neighborhood and undesirable tenants and sell the property at a price that is less than desirable (possibly even a loss) because of the fluctuations in the marketplace? Perhaps you can reach out to your guest and ask him for his input on this?

@CoachChadCarson 4 ай бұрын

I can share a story on that. I bought a number of properties in 2007 (right before the recession) that were not good long term rentals. I made mistakes on locations or paid bad prices. Some we sold right away to cash buyers when we could. Others we sold with owner financing. And still others we kept until the market turned around. Neighborhoods aren't like stocks that crash under your feet. They change slower. You have time. So, if you have a loser property I say try to sell asap. But if market conditions don't allow, most of the time be patient and be creative to get it sold. And in some cases, take a loss if you have a better opportunity to reinvest into

@InvestingArchitect 4 ай бұрын

Great Question! Like Coach mentioned during the episode, the deterioration in the quality of location does not happen overnight. This is where you try to sell ahead of potential problems in the horizon. But if the current market environment is not favorable to sell where you would take a steep haircut on the sales price, then you can ride it out and hold on to the property until the conditions improve. The key idea is to sell only when it's advantageous to your long term plan.

@fabiola925 4 ай бұрын

13:18-14:15 this should be a short

@CoachChadCarson 4 ай бұрын

Noted! Thank you! We'll see what we can do

@jillbowden9103 4 ай бұрын

How to sell my rental without my profit being eaten up by the taxes on that sale!??

@InvestingArchitect 4 ай бұрын

You execute a 1031 tax deferred exchange. Sell the property and the proceeds are transferred into a replacement property (or multiple properties) and you avoid paying capital gains taxes on the sale.

@snatchinitback4635 3 ай бұрын

@@InvestingArchitect I always see people offer this as a solution, but it is *not* helpful for someone who is *not* looking to get another property. What would you say, for someone who just wants to get their cash without losing it all to taxes?

@InvestingArchitect 3 ай бұрын

@@snatchinitback4635 if you’re not looking to get another property, the only way to get *some* of your cash and avoid taxes is a cash out refinance.

@Dbb27 3 ай бұрын

@@snatchinitback4635 you aren’t going to lose it all to taxes. It’s 15-20% so that’s certainly not all. It’s your basis less depreciation, less costs to sell and what is left is taxable.

@snatchinitback4635 3 ай бұрын

@@Dbb27 You're right - it's not *all* (slight overstatement on my part), but that 15-20% HURTS! That's what I wish there was a solution for.