To sell next year or in 2023?

[Kristel Lim]

Hi all! I bought an as is property on September 2021 in Utah. I’m thinking of selling it because it needs some work and I realized I wanted turnkey property for future investments. Right now, it needs a new roof. Should I wait 2 years to sell it? Or just 1 year? I’m afraid if I wait 2 years the housing prices will decline and I’m left with negative equity and would not be able to get any of my investments back. I would appreciate some advice or insight on this 🙏

[Nate Sanow]

I don’t think the market will go down but of course the only way to know if it will or won’t is access to time travel or super powers. But prices being up don’t mean they are about to crash. If rates go wayyyyy up or if lenders stop being strict on loans, watch out. It was lenders and lack of good criteria that caused the 2008 melt down, not just rising prices. So holding 1-2 years to then sell won’t hurt you, in my personal opinion.

Now. On the roof expense VS turnkey. Are you sure you want to sell this quick? Even “turnkey” roofs could be aged. If they are brand new what about HVAC? Hot water tank? Etc. The unfortunate reality is that we are all in the business of paying for repairs once we own rentals. I wish it wasn’t so, trust me. I wish it was just “skip to the good part” like the song says, and we are cashing checks and living on passive income.

If you want to sell, sell. I’m just encouraging you to be prepared at some point to weather the storms on repairs and capex expenses because they tend to come up. Oh and not to mention the buyer may beat up your asking price over the roof. I just see a lot of hungry newer investors get immediate buyers remorse and it’s just making me get more honest about this subject. Buying investment property is GREAT but there are highs and lows. 

I do wish you well and no matter what you decide it will be ok - just keep going. Have an awesome day.