When should You sell your rental property in Myrtle Beach?

WHEN SHOULD YOU SELL YOUR RENTAL PROPERTY IN MYRTLE BEACH?
Hello everybody, Abe Safa here with Century 21 The Harrelson Group here in South Carolina.
Hope you are well. I wanted to shoot this video to answer a commonly asked question of “When should I sell my rental property?”. Now that question is pretty vague, it can have a lot of different meanings based on the context asked in. For this particular video we’re going to focus on it’s in the context of “I got a rental property that I got rented out there, I’m debating whether I want to sell it or not, should I keep it or sell it. What do you recommend?” So within that context, to me it’s a very simple formula. Unfortunately, you don’t get this from a lot of agents, cause a lot of agents are going to say “yes, let’s sell it, let’s get your out.” So, here’s what I look at when it comes to property like that, first of all it’s an investment so we got to be detached from it’s a house, it’s a condo, I’ve owned it for so long. You got to forget all of these things, it’s an investment. So what you want to look at and I help my clients go through this, we actually look at the numbers. Do you have a mortgage number one, how much equity is on the property number two, does your renter pay on time, what kind of rent do you charge? So we look at these different variables and look how much rent that generates, look at all your expenses meaning mortgage, your property taxes which as an investment property are going to be pretty significantly higher than it would’ve it was a primary residence. How much rent do you collect, are they on time when they pay rent, and what’s your HOA dues and other expenses? So we look at all that data and at the end of the day what we’re trying to figure out is what is your net on that investment. Meaning that for you it’s let’s just say it’s worth a $150,000.00, you’re collecting rent we subtract the expenses, subtract the HOA dues which is significantly high usually if it’s a condo and then see what that number is and we look as a net number what percentage it is of what the property is worth. To us that’s your return on investment, so when we look at that number the next thing we look at is if you want to sell this property, what would you do? If you have a better investment, if you have a better use for your money you could take that cash out, put it into somewhere and get a better return on investment. Then to me it’s a no brainer as long as you’re detached and look at it as purely as an investment. So, simple formula, what’s your return on investment currently if I took that cash out could I do something better is going to be a simple formula that we use in most cases now, as other variables are that take in but that come into play depending on what we think is going to happen with the market. Do we think prices are appreciating or depreciating is there a better use as far as I took this money out of this one particular investment rental property and then bought something else in the market that might be a better long term play? So things like that we can look into as well but we’ve got to get past that first question, “Is this a good investment, are you getting as good enough return on investment or is there a better opportunity for you there?”. That should answer that case for most of you, you can run your numbers and see what kind of return you get to make. Make sure you look at the net number make sure you subtract out roughly 10% to cover repairs and expenses and things like that because things will happen, whether it’s the HVAC system, whether it’s new floor. Things like that will happen, so run those numbers, see what you think.
I’m here to answer any question that you might have and be able to guide you in any direction that you need. My number is 843-360-2145
www.abesafa.com