3 Things You Should Know About Selling Investment Property in Ohio City

Planning on selling investment property in Ohio City soon? When you decide to make the move into the professional world of real estate investment, getting the most out of each and every property is a must. In order to put yourself in the best possible position and make your investment goals that much more attainable, let’s look at 3 things you should know about selling investment property in Ohio City.

Budgeting Is Essential

One of the biggest obstacles any real estate investor faces is managing the budget of individual projects – whether they are tackling properties one at a time or an entire portfolio. 

Meticulous bookkeeping is necessary to allow any investor to keep track of how much money they have sunk into a project and then inform the resale price when selling investment property in Ohio City. Whether you used that property as a rental or are simply looking to flip it, chances are you put some additional finances into it to get it in good working order for the open market.

Staying on top of any expenditures from repairs, marketing, ongoing regular overhead, and even lost rental revenue quickly gives you an idea of what price point you need to hit in order to make the property’s sale successful. A common mistake amongst new investors thinking they can quickly make a buck through flipping houses is that they fail to appropriately track their expenditures during upgrades and repairs. Failing to do so often results in the investor either ultimately getting less out of the property than they could have, or needing to halt all repairs or upgrades and push selling the property in a sort of incomplete state. 

In either case, that investor is leaving money on the table, making the property’s sale more complicated, or possibly both.

Navigate the Red Tape

Every investor needs to also take the proactive step of setting aside some of their profits towards paying any capital gains taxes when selling investment property in Ohio City. 

However, if you’re willing to invest additional time into an individual property, there are ways to defer or eliminate these taxes. The way this is accomplished is by passing what are referred to as “ownership and use tests.” Generally, the rule of thumb here is that selling investment property that you lived in for a minimum of two out of the past five years means avoiding those capital gains taxes. It is important to note that the same cannot be said for properties you are renting out. 

There are a lot of different classifications for capital gains taxes and this all boils down to your best bet is to consult an accountant. Their professional expertise will be invaluable to keep your real estate investing venture above board.

Give It Some TLC

We previously discussed accounting for any repairs or upgrades before putting the property on the market, and these repairs or upgrades should be considered thoroughly. 

If you just bought the home or have rented it for a while, chances are it could use some attention to bring it into the current style or even to target a more discerning buyer. Prior to going up for sale, do a walkthrough or inspection to create a to-do list and then prioritize those repairs and upgrades based on infrastructure first and cosmetics last. Glossy cosmetic updates can certainly be nice, but doing something to give the property good bones is going to help you blaze through inspections on your way toward closing. 

Finally, with the home deep cleaned and repaired, keep it that way so buyers don’t start to sour over time. If you need to invest a little extra money in having a cleaning and landscaping crew stop in from time to time, it may pay off in the end when the property sells.

Help Selling Investment Property in Ohio City

If you’re looking at selling an investment property in Ohio City in the near future and want an experienced team behind you, contact us today at (440) 628-1321!

A few more articles to check out

What You Should Know About Buying Retail Property in Strongsville

4 Reasons Why Selling Your Home on Your Own Can Be a Huge Mistake for Property Owners

4 Things You Are Doing That Are Decreasing Your Property Value in Independence

What is a Hybrid Agent and Why You Should Work With One When Selling Your House in Ohio City

Some Of Our Favorite Cleveland Neighborhoods

If you’re looking for homes for sale in Cleveland Ohio, here are some properties for sale and descriptions of the most popular neighborhoods on the city’s south and west sides (tap the following links to visit community pages):

Detroit-Shoreway, Cleveland 44102:

Battery Park, Cleveland 44102

Gordon Square, Cleveland 44102

Duck Island, Cleveland 44113

East 4th District, Cleveland 44115

Edgewater, Cleveland 44102

Edgewater North, Cleveland 44102:

Bramleigh Park, Cleveland 44102

Edgewater Cliff, Cleveland 44102
Hingetown, Cleveland 44113

Ohio City & Tremont, Cleveland 44113

Ohio City, Cleveland 44113 & 44102

Playhouse District, Cleveland 44115

The Flats, Cleveland 44113

Warehouse District, Cleveland 44113

Little Italy Westside, Cleveland 44102
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