It depends. Did you buy it at the height of the market in 2005? Are you hoping to cash out with $100k in appreciation profit? On every lease renewal my clients always ask me, “How much is my house worth if I sold it tomorrow?.” Zillow.com can help you take a quick pulse of a property’s value. Zillow’s data accuracy has come a long way. I find myself using it as a cheat sheet constantly. It won’t be right, but it will be close! Here’s a snapshot of home values in Shrewsbury, MA over the last 4 years.
Some clients have had their personal home on the market and they couldn’t get it sold for what they hoped. After looking into bringing thousands to the closing table, or even a short sale, they decided to rent the property until the market adjusts. We cover their costs for a few years, they get some nice tax breaks and they can move on with their life.
When you only have 2 out of three floors rented in your 3 family rental property, you’re throwing away all your hard work and profit. A 66% vacancy rate is unacceptable for pro real estate investors. It can make a potentially great year a total bust.