As the housing market continues to recover, you may be asking yourself if keeping your Queen Creek investment property is a good decision. My advice is to look at the whole picture. Real estate market trends are of course important but so are other considerations.
Keep your Queen Creek investment property if…
It’s Making You Money.
If your investments aren’t making you money, it’s time to change your investment strategy whether it’s a property or a mutual fund. I’m no mutual fund expert so we’ll stick to investment property. Take this into account the following when determining the profitability of your house:
- Mortgage payment
- Rent received
- Regular maintenance
- Move in/Move out repairs
Your Queen Creek investment property is your asset so it’s important to keep up on regular maintenance.
- A/C inspection once a year
- Roof inspection every two years
- Hot water heater drained once a year.
- Check perimeter of home for evidence of termites and cracks in the foundation.
As one tenant leaves, re-invest in the property. An updated house will yield more in rental income. If you’re finding you don’t have cash on hand for updates and/or maintenance, you may not be charging enough for rent or saving enough of the rent to re-invest back into the house.
Age of the Property
Before remodeling the kitchen and bathrooms or replacing the A/C unit, assess the age of the home. If it is more than ten years old, it may need more updates than you can afford while keeping the property a profitable investment.
When you purchased your rental property, you did it for a certain reason – to make money. If you’re still in a stage of life when you need additional income, consider keeping your house – and make sure it’s making you money.
Interested in the ROI of your Queen Creek investment property? Contact the team at Beery Realty for an Investor ROI Calculator.