Monday, May 10

Dear Jacksonville Landlords: Sell NOW!

sell your jacksonville rental property

Full disclosure: I would rather live next to homeowner's than rental tenants. That's partially why I am writing this article, but it's also sound financial advice for landlords right now. Sell, sell, sell!

Why? I know a lot of Jacksonville Landlords got in to the real estate market after the 2008 fire sale. That was smart. You've made some good money. Now is your time to cash in and wait for your next conquest. In doing so, you will allow homeowners to live in my neighborhood with me rather than renters, which will make me happier.

If you own a house in East Arlington (where I live), you can sell your house for at least $50,000 more than it's worth. You might get multiple offers or be able to unload it without needing an inspection. Buyers are desperate, just like sellers were back in 2008. Real estate, like stocks, should be bought low and sold high. If construction costs come back down and the Covid dust settles, your house may not continue to increase in value, so selling right after a big jump is a good idea.

You can't get the same money out of renting as selling now. My rental property went up 20% in value in the past year, but I'm still charging the same rent. I'm not even sure if it's legal to raise rent 20% in a year. Even if it is legal, I doubt you'd get it. If your East Arlington rental property went up $100,000 like mine did over the past 3 years, how long would it take for your renters to make up that gain, especially if you're still paying a mortgage at a higher-than-current interest rates.

Get out before insurance companies refuse to cover you. Insurers are looking to drop Florida homeowners right now, but you might even have a harder time as a landlord. Cash in while you can, before you're forced to replace the roof or plumbing for no real reason.

Most of all, get out before the bubble bursts so that you can get back in afterwards. If you bought your rental property for $150,000 in 2008 and it's now worth $300,000, you've doubled your money in just over a decade. Invest that cash elsewhere for a couple of years while you wait for the bottom to fall out of the current market. You'll be able to snap up a similar house for $250,000 or less and start the process all over again.

Landlords don't want to make the major renovations the homes built around 2000 need in East Arlington. You got a decade of rent without having to do much, but it's time to replace roofs and windows and appliances and plumbing. Soon. One of our blinds just broke, which is probably a sign that interior plastics are starting to get brittle. Skip the big updates, leaving them for homeowners who will care (and might not drive at 40 mph down my block or ignore HOA/general decorum rules like your renters do). But don't do it for me; do it for you.

I'm not a realtor and don't care which one you use. You can probably make a killing selling by owner right now, too. If nothing else, use Zillow's Make me an Offer tool (if that's still a thing) just to see what's possible. It might surprise you enough. If so, I'd love to tell my wife to bake some cookies for the new homeowners next door.

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