Selling First Rental Property
Hey fellow, investors. I’ve recently decided to sell one of my rental properties. It was the first one I bought, and the one I really cut my teeth on. I did most of the remodeling myself, spending a lot of time and money improving the building.
During this time I spent hours listening to real estate podcasts, really trying to gain the knowledge and experience to become a successful real estate investor. I was in the ring, getting dirty, taking blows, and learning along the way. This was a great experience.
However, fast-forward about eight years, and the property is no longer performing the way I had intended. On paper, it barely scrapes by a profit. I am also increasingly aware of looming capital expenditures. It will need new heating systems and a roof in the next few years.
On top of this. Dealing with the tenants has become a pain in the ass. They are constantly nitpicking every little thing, requesting additional allowances, such as pets, etc., the list goes on. I’ve learned that I don’t enjoy being a landlord at all.
I’ve come to the conclusion that owning this property is weighing me down mentally. I’m going to unload it. I will walk away with about $85K after closing. I have no plans to 1031 into another property with the proceeds. I think I’m going to take the tax hit, and use the gains to improve my primary home. A new bathroom and maybe a pool for the kids.
I know that I will probably get some heat in this sub for selling. I know that the longer you hold the better the numbers get. But I’m ready to move on from this property. I still have a couple other rentals that I will be holding onto as they perform much better and are much more stable.
Overall, I have mixed feelings about this. This property was my first venture in into real estate investing and taught me more than reading a dozen books on the subject. When I drive by it and see the improvements, I take pride and knowing that I had a hand in all of it. I have a bit of regret because this goes backwards against my plan of being financially independent through real estate investing. I was going to buy and hold forever, but this property just didn’t feel right anymore.
Has anybody gone through something similar? Would love to hear from you all.