Investing in real estate can be a profitable venture, but knowing when to sell an investment property is crucial to maximizing your returns and minimizing losses. Holding onto a property for too long or selling it too soon can both have financial implications. Here are five red flags that signal it might be time to sell your investment property.
1. Negative Cash Flow
Red Flag: Your property consistently generates less income than it costs to maintain.
When your rental income no longer covers your mortgage, property taxes, insurance, maintenance, and other expenses, it’s a clear sign that your investment is no longer financially viable. A negative cash flow can erode your savings and put you in a precarious financial position. If you find yourself consistently dipping into your personal funds to cover these costs, it may be time to consider selling.
Interesting Insight: Did you know that a property's cash flow can be impacted by market cycles? During economic downturns, r. ...