Vacant Homes Cost Money

Vacant homes cost money, even if they are owned free and clear. Consider these costs:

  • Maintenance
  • Taxes
  • Insurance
  • Vandalism
  • Lost opportunity costs on your equity
  • Miscellaneous expenses and your time

Number five, lost opportunity costs on your re-invested equity, may cost the most money. If your property has a mortgage on it, then you can even add a seventh cost. If you put your equity in other investments, it could appreciate faster than top of the market real estate may in the next few years.

 

Non-Owner Occupied Questions

  1. Do you keep 90% of your units rented?
  2. Do you have quality tenants?
  3. Do you get maximum rents from your units?
  4. Do you have a cash flow each month?
  5. Can you afford to hire someone to make your repairs?
  6. Are you tired of playing the rental property games?
  7. Is it time to cash out or trade up?

If you answered “no” to questions 1 – 5 and “yes” to questions 6 and 7, then maybe it’s time for a qualified agent or broker to help you.