Should You Sell Your Rental Property to Pay Off Your Primary Residence Mortgage?
You purchased your rental property in hopes that it would pay for itself and then provide a flow of income on the side. Sometimes things don’t always go according to plan. You may have tenants who aren’t paying the rent or maybe you’re just done with the extra work that comes along with being a landlord. If you’re thinking to yourself, “should I sell my rental property?”, you may want to consider a few things like selling your rental property to pay off your primary mortgage. One of the best ways to do this is to sell your property for cash. This article will cover a few of the questions you should ask yourself about selling your rental property to pay off your primary mortgage, whether you sell it easily and quickly for cash or if you sell it on the market.
Do I Need the Money Now?
Are you behind on your primary mortgage? Are you looking to retire soon and want to retire debt-free? Did you have a recent experience that left you in debt? All of these are good reasons to consider when thinking about cashing out on your rental property. Your money from the sale will help you pay off your primary residence mortgage and allow you to live worry-free. And if you choose to sell your rental property for cash, you will have those funds a lot quicker and with a lot less hassle.
How’s the Current Market?
Is buyer demand high in your market? If so, the opportunity to sell quickly and at a gain is significant. If the current market is at a lull, your property could sit on the market for a bit or you may have to sell for a loss. If you’re not desperate to get rid of a property quickly, it makes sense to wait until the buyer demand increases. But if you do need to sell your rental property right now, selling it for cash is something you should consider.
Are There Better Investment Options?
Does paying off your mortgage allow you the opportunity to redirect your cash flow into better investment opportunities? Depending on your situation, the stock market or another business opportunity may be more worth investing in at this point in your life. Whatever your financial situation maye be, it’s always good to consider what other investment options that are out there that may be a better fit than rental properties. Selling your rental property to pay off your primary mortgage is a good place to start.
What Are the Tax Repercussions?
Depending on your income, you may wind up owing a capital gains tax on the sale of your rental property. You will owe long-term capital gains taxes on any profits from a sale of a rental property after one or more years of owning it. If you work with a real estate professional, they can help you minimize these taxes by subtracting losses or doing a 1013 exchange. Just keep in mind that real estate professionals don’t work for free, and whatever you pay them will cut into your profits from the sale of your property.
What About My Tenants?
You can legally sell your rental property while your tenants are still living there. But, this can be a difficult task. You will want to look for the right investor who wants to handle being a landlord and deal with the tenants. In some cases, it may be better to wait until their lease is up.
Am I Still Happy With My Investment?
Your rental property made sense to invest in at one point in your life, but does it still make sense at this point in your life? Your current circumstances may have changed since you chose to invest in a rental property and recent major life events may make it hard to give all your time and attention to your rental property. The upkeep and maintenance of the property can become too much of a headache and may not be worth it anymore. If you are no longer happy with your investment, selling your rental property to pay off your primary mortgage is a good route to take. You just need to decide whether you want to invest the time and money into selling it on the real estate market or if you want to sell it today for cash.
Sell Your Rental Property for Cash to Quick Fix Real Estate
We help homeowners sell their rental properties fast and without any hassle. No matter what your situation, you can easily turn your rental property into cash to pay off your primary residence mortgage and live debt-free. When you sell to Quick Fix Real Estate, you can skip the closing fees and real estate agent commissions, and we can have a check in your hand as soon as today. Contact us today to get your cash offer.