Sell Your Rental Property Fast In Pittsburgh PA
Should I Sell My Rental Property In Pittsburgh?
Some of the best times to sell a rental property in Pittsburgh, PA are when housing is in high demand! There is currently very low inventory on the market, but demand is very high. Now may be one of the best times to sell your rental to capitalize on making the most amount of money possible.
Reasons to Sell A Rental Property
Bad Tenants
Selecting great tenants is not the easiest task! Sometimes you can get stuck in a lease with tenants that aren’t paying on time, constantly calling you on the phone, insistently asking for maintenance requests, or are causing physical damage to the property.
Cash Flow Is Too Low
Cash flow is key to any successful investment. However, things don’t always go according to plan. Do you feel like you’re spending countless hours managing your property and spending thousands of dollars to fix and maintain in return for very little money back per month? You’re not alone, and if you feel like the investment is not worth your time, it may be the perfect opportunity to let it go.
Cost of Maintenance and Repairs is High
The cost of maintaining a rental property can add up to thousands of dollars per year. Whether the furnace finally decides to kick the bucket, the roof leaks, or the tenant is constantly calling about a new leak that has sprung up, these repairs can really dig into your pockets and affect the profitability.
Spending Too Much Time Managing Property
Most people don’t realize how much time, effort, and management it takes to place tenants, perform maintenance, show the property, manage collections, keep your books in order, manage turnovers, the list goes on…
High Vacancies, Turnovers, and Evictions
Having to evict a tenant can be a horrible experience. Especially in Pittsburgh, which is a tenant friendly state, the hours put into evictions can make owning rentals not worth it. Worst of all, you’re not collecting rent, and the tenant may damage the property as a result of having an eviction filed on them.
Will I Owe Capital Gains If I Sell My Rental Property?
Most likely. When selling a rental property, you will pay long term capital gains if you have owned the property for more than a year and realized a gain on the price you sell for, and what you bought it for. The below chart shows the current capital gains taxes based off of income:
However, there are ways to defer capital gains tax including doing a 1031 exchange, or selling via owner financing. Either one of these options allows you to avoid paying all the capital gains up front, and 1031 exchanges can even defer all capital gains taxes indefinitely.
The amount you pay in taxes from the sale of your rental property is the difference between the net proceeds, and the cost basis. For example, lets say you sell your rental property for 100,000 dollars. It cost you 60,000 dollars to acquire the rental property. Your taxable proceeds from this example is 40,000 dollars, and you would be taxed according to you income level and filing status as shown in the table above.
When Does Selling A Rental Property Make Sense?
Whether an investment property makes sense or not isn’t just about the finances. There are also non-financial impacts to consider as well.
A Major Life Event
You may need access to cash for a major event, or health issues. Or maybe it’s just time to retire from the rental property game. If you are relocating, or your property is too far away, it may be a good time to sell.
Found A Better Opportunity For Passive Income
Rental properties are not the only avenue for passive income. There are plenty of other opportunities out there available, and if the cons are outweighing the pros, you can sell and move on to better opportunities.
Can’t Handle The Hassle of Maintenance and Management
Let’s face it, managing rental property is no easy task, and not everyone enjoys doing it.
Selling Your Rental Property To A Cash Buyer
We buy rental properties In Pittsburgh PA, cash, without having to pay realtor fees and commissions, and without having to make any repairs. We can close whenever is convenient for you. Regardless of whether you have existing tenants, or the property is currently vacant, we can work with you to come up with a solution. Forget about making any repairs, you can sell 100% as-is, without having to clean or prep for showings. Find out how we make our offers, and more about us here. If you’re ready to receive a no obligation cash offer, please fill out the form below.