Keys to Selling a St. Louis Investment Property
Your St. Louis investment property is supposed to do one job: make you money! When you sell your St. Louis investment property, your goal is to get the largest profit you can from your investment.
Just like selling your personal home, when you sell an investment property, you hire a real estate agent to list your home and attract potential buyers. Although the process is very similar, there are some differences, such as tax rules.
Below are some things to consider when selling your St. Louis investment property.
Do You Want to Sell Your St. Louis Investment Property?
This question might sound silly, right? You are thinking “of course”! You want to realize the money you will get when selling your investment, but there are other things to consider.
For example, you could always rent out your St. Louis investment property. When you rent out your investment property, you are investing in a long term investment that will, under the right circumstances, bring you steady income over time instead of the lump sum.
However, while renting works in some markets, selling your investment property can be a better choice in others. In markets that are deteriorating, you might want to sell and get out before a big drop in price.
Another reason to sell is if the property is in decent shape, but you know over the next few years it will need expensive maintenance, such as a new roof, HVAC system, or others. In situations like this, you might want to sell now.
Potential Buyers
When you sell your St. Louis investment property, you need to sell it to an interested buyer. Potential buyers that might be interested in your investment property could be anyone from someone looking to move into the neighborhood or another investor. If you currently have a renter in the house, they might be interested in purchasing the home also.
The more attractive you make your St. Louis investment property, as well as making quality upgrades and updates, the better your chances of securing a buyer. Make sure you learn about the neighborhood your house is in and make the investments into the property that potential buyers in the neighborhood are looking for.
What Can You Expect to Make Off of Your Investment Property?
There are many factors that go into determining your eventual profit or loss on your investment property. One of them is taxes.
When you sell an investment property, be prepared to pay capital gains taxes. This is an area that you will want to work with a trusted advisor on. A professional can save you considerable money and problems by working with them from the start.
Other factors that help determine how your St. Louis investment turns out is the current real estate market, the neighborhood, and the amount of repairs that will go into your house. To get a general idea on what you can make off of an investment property though, RealtyTrac has statistics showing that flippers average a gross profit of around $58,000!
The potential to make that kind of money on your investment in a relatively short period of time is very enticing. Make sure you do your research first and then follow a plan to executing on so that you can enjoy a nice return on your investment.