Sell Your San Diego Rental Property at a Loss
Years ago, having a rental property was like having a machine that printed money (legally, of course). But with interest rates and inflation being the way that they are in 2022, that’s no longer the case. In fact, you might be losing so much money from property maintenance and marketing that you’re better off selling your rental property — even at a slight loss.
To get an idea of how bad things are for you and your rental property, imagine being on a leaking boat. Your rental property is the boat, and the current interest rate is a hole. The hole might seem manageable in the interim. But over time, the hole grows (like the interest rate) amidst waves of market uncertainties and inflation, making it harder for you to stay afloat.
You get the picture.
If you’re looking into selling your property, look no further. We’re here to buy your house or rental property in San Diego, providing you with a quick and easy cash offer close to your property’s sale value. Find out how much you might make from a cash sale from us at I By SD by using our home sale calculator.
In the meantime, learn more about why selling your rental property for cash may just save you from sinking deeper into lost profit in San Diego California.
The Signs That Say You Should Sell Your Rental Property at a Loss in San Diego County
Selling your rental property in San Diego at a loss may not be the most important thing on your mind right now. But, as interest rates and costs increase, you can only expect the value of your property to decrease further. Once your rental property’s value bottoms out, it’ll take time to make any gains from it.
Luckily, you can keep an eye out for these signs that say it’s high time you part ways with your rental house or property.
As interest rates increase, so too do mortgage rates. As a result, few people will have the financing available to purchase your property.
If you want to prevent yourself from watering a dying plant with your finances, it’s best to cut your losses. And by cutting your losses, we mean selling to a buyer who’s willing to offer you quick and hard cash for your property. While it pays to wait for the right buyer, interest rates can climb to a level that makes finding willing buyers nearly impossible.
You’ve Had To Decrease Your Rent Prices To Attract or Retain Tenants
While this might sound like good news for rental property owners like yourself, there’s one thing you may have failed to consider: inflation. Interest rates make applying for mortgages impractical or near-impossible for some people in San Diego California. For this reason, many will opt to rent homes instead of buying them.
According to the Bureau of Labor and Statistics, California has seen some of the worst price hikes in 12 months. Food prices have soared by more than 7% since October 2022, with energy costs soaring to above 23%.
What do these statistics mean for you? It’s simple. It means you may have had to lower your rent to attract or retain your tenants, or you may have to do this in the coming months.
Will this development make your rental property as profitable as you foresaw it to be? The answer is no. For this reason, don’t delay. Sell your rental property for a cash offer in San Diego.
You Are Paying Through the Nose for Repairs
Inflation and interest rates are just some of the forces going against you. As a property owner, you’re also shouldering numerous maintenance fees.
While maintenance fees are a “necessary evil” for many property owners in Southern California, they cease to be necessary when a property doesn’t generate income. Over time, you will have lost significant money just to maintain your rental property’s curb appeal.
If you can no longer keep up with repairs and other maintenance costs, you’ll be better off selling your property.
We at I Buy SD purchase homes and rental properties in San Diego as-is. Reach out now for a cash offer close to your property’s sale value.
Life Changes That Prevent You From Maintaining the Property
Sometimes, life gets in the way of rental property ownership. Circumstances like illness, divorce, or a sudden move can make maintaining a rental property challenging. Indeed, you can use property management platforms, but that would add to your growing list of expenses.
Sudden life changes require quick and fast solutions, and a traditional sale through a realtor will cost time and money. However, accepting a cash offer allows you to salvage a large portion of your rental property’s value as you prepare to move forward.
You Want to Avoid Capital Gains Tax
The longer you hold on to your rental property, the longer you will be paying percentages of your income from it as tax. Worse yet, if you go through the lengthy process of selling your property for profit, you’ll have to pay capital gains tax.
Capital gains tax can amount to as much as 20% of your profits. This percentage may not sound like a lot if your rental property has a six-digit price tag, but the taxes easily offset what you’ve spent on repairs, realtor services, and marketing costs.
If you’re looking for a way to quickly sell your home without incurring tax obligations, selling at a slight loss is a better option. Selling at a loss allows you to claim tax deductions and salvage a large portion of your rental house or property’s value.
Reach out now for a quick, safe, and legal cash offer in San Diego and California.
The Pros of Accepting a Cash Offer for Your Rental Property From Us
By now, it’s clear that selling at a loss allows you to avoid high maintenance costs and capital gains taxes. While you can sell your rental property in many ways, a cash offer is a superior choice. Here are some of the reasons why you should sell your rental property to us at I Buy SD:
We Buy Houses or Properties As-Is
You don’t need to make repairs when you sell your rental property. We’ll take your property off your hands as-is. We accept homes and properties in San Diego in any condition. We’ll buy your rental property if it has any of the following:
- Fire damage
- Flood or water damage
- An ongoing tax lien
You Get a Quick and Free Cash Offer
Some cash buyers of houses will charge you for a cash offer. Not us. As soon as you get in touch, we’ll have a cash offer ready for you. All you need to do is fill out our online form, wait for us to get back to you, and receive your free cash offer.
Save Your Money. We Don’t Take Fees
Because you deal with a direct buyer when you accept a cash offer from us, you don’t have to pay any realtor fees. Instead, we pay you in cash in just a few days.
Safe and Sure
Traditional property sales can fall through. Not with us. Once you accept an offer, we won’t back out. Your home or rental property will be as good as sold.
Ready To Sell Your Rental Property at a Loss? Get a Cash Offer That Helps You Move Out and Move On
We at I Buy SD pride ourselves on helping property owners like yourself sell their properties. We’ll offer you fast and easy cash for your distressed rental property in San Diego and California.
Find out how much we’d be willing to pay you for your home. Reach out now and get a free cash offer that helps you move on with your life.