Rental Property Owners – Keep Your Income and Give Away the Expense
1. I just carried the property through the winter and had to pay a bunch of negative cash flow.
2. I don’t want to sell in the summer because I want to keep the positive cash flow for myself.
Here is your Dilemma
Seller: I want to sell but need to recoup the negative income of the winter by renting in the summer.
Buyer: I want to buy the property in the spring so I can have some extras cash flow to carry the property through the winter.
My Goal for the Seller
1. Maximize Price
2. Collect the Summer Income
3. Shift the negative cash flow to the next owner.
Here is how we do it:
1. Maximize price – the way we get you top dollar is by exposing your property to the most people we can. We do this by making sure we are marketing your property when the demand is at its highest. Demand is at its highest in the Spring and Summer months.
2. Collect the Summer Income – The way we accomplish this is by listing the property right now. The property will take 90 days to sell. So if it is mid-April that mean it will not get a contract until mid-July. Then it will take 30 days to close – or Mid-August.
A. List in April
B. Sell in July
C. Close in August
3. Shift the negative cash flow to the next owner – When we follow the above pointes you will end up closing the transaction right before the rental income starts to decline.
Following this method allows you to collect most of the summer rental and have it sold when the rentals taper down. This is the we make the most income and then shift the losses of the off-season to the next buyer.
About The Author
My name is John Moran – I am the Team Leader for Keller Williams Realty’s At The Beach Team. My team and I are committed to doing the very best we can to get you the greatest return for your real estate investment and will strive to help you maximize your position whether you are a buyer or a seller.
I hope this information is helpful for you and if there is anything I or any of our team members can do to help you in the future please do not hesitate to call or text me at850-217-7618, or email me at JohnMoran@AtTheBeachTeam.com
Note: Keller Williams Realty’s At The Beach Team sells more condos from Panama City to Pensacola than any other Realtor or team of Realtors – by double! The At The Beach Team also ranks in the Top Ten for combined sales (Houses and Condos).
More Real Estate Tips Like These
If you would like to see other tips about buying or selling real estate simply send me an email atJohnMoran@AtTheBeachTeam.com and I will be happy to email them to you. If you would like to receive future tips – we typically send them out once a month – again simply send me an email and I will make sure you get them.
– John Moran