Is it time to sell your RENTAL PROPERTY?
Myriad Real Estate
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Is it time to sell your RENTAL PROPERTY?
51 просмотр · 13 дн. назад
Myriad Real Estate
733 подписчика
51 просмотр · 13 дн. назад
Owning a rental property can be a great long-term investment, but that doesn’t mean every rental should be held forever. At some point, investors need to evaluate whether their property is still producing a strong enough return to justify keeping their money tied up in it.
In this video, we break down *how to know when it may be time to sell an investment rental property**, including a simple **11% ROI rule* that can help you evaluate your property's performance.
The 11% benchmark looks at two components of your investment return:
🏠 *Monthly Net Rental Income* – What you're actually earning from the property after expenses, including property management, maintenance, taxes, insurance, HOA fees, vacancies, and other costs.
📈 *Average Annual Appreciation* – The property's average annual increase in value over time.
When you combine the property's **annualized net rental return with its average annual appreciation**, you can get a clearer picture of your overall return on investment.
For example, if your rental property is generating a *6% annual return from net rental income* and has historically appreciated at an average of **5% per year**, your combined return would be approximately **11%**.
But what happens when the numbers no longer add up?
We’ll look at the factors investors should consider, including:
• How much you're actually making from your rental each month
• Property appreciation and how to calculate an average annual rate
• How much equity is tied up in the property
• Opportunity cost and what your equity could potentially earn elsewhere
• Repairs, maintenance, vacancies, and increasing operating costs
• When a rental property may no longer be producing an attractive return relative to its current value
The goal isn't simply to ask, *"Is my rental making money?"* The better question is:
*"Is this property still the best use of the capital I have invested in it?"*
If you're a Phoenix-area real estate investor considering whether to **hold, sell, refinance, or reinvest**, this analysis can help you look at the decision from a numbers-first perspective.
📍 Thinking about selling an investment property in Phoenix or the surrounding Valley? Contact Myriad Real Estate to discuss your property's current market value and what your options may look like.
Daniel Brown is the Founder, CEO, & REALTOR® at Myriad at My Home Group. Located in Central Phoenix, Myriad serves clients throughout the Phoenix metropolitan area.
Website: http://www.MyriadAZ.com/
Facebook: / myriadrealestate
Daniel's Instagram: / dannybrownaz
Myriad's Instagram: / myriadaz_