Is your investment property still worth holding?

A few questions to ask before you decide to keep it or sell.

If you own an investment property, there’s a good chance you’ve asked yourself this at some point: Should I keep it, or is it time to sell? There isn’t one right answer, especially in today’s market. But there are a few questions I’d be asking before making the decision.

Look beyond whether rent covers the mortgage. Consider maintenance, insurance, taxes, vacancies, property management, and the time you’re putting into it. A property can look profitable on paper while quietly becoming more expensive to hold.

This is becoming increasingly important. New Fannie Mae and Freddie Mac guidelines are putting more emphasis on the financial health of condominium associations. Beginning in 2027, condo associations will generally need to allocate at least 15% of annual assessment income toward reserves, up from 10%, and lenders are already applying more scrutiny to condo projects. This could mean higher HOA dues, special assessments, or financing challenges for buildings that aren’t adequately funded.

From an investment standpoint, rents have softened more noticeably for some condo-type properties, depending on location and price point. That makes it especially important to look at the actual rental numbers today rather than relying on what the property rented for a few years ago.

If the property has appreciated significantly, it may be worth asking whether that equity is working hard enough where it is or whether it could be better used somewhere else.

Selling becomes a very different conversation when you have a plan for what comes next. Maybe that means paying down debt, moving into another investment, diversifying, or using a 1031 exchange to reposition your real estate portfolio.

Sometimes the best reason to sell has less to do with the market and more to do with you. Your finances, priorities, and investment strategy can change, and the property that made sense five years ago may not be the one you want to own for the next five.

Look at the numbers, your equity, your tax implications, and what you want that money to do for you next.If you have an investment property and you’ve been wondering whether it makes more sense to hold onto it or sell, reply to this email. I’m always happy to talk through what your options could look like.

Melanie