Should You Sell Your Rental Property at a Loss?

Published on March 1st, 2022 | 4-6 Minute Read

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Investing in real estate in California can lead to big profits. However, there are always risks involved with real estate investments. One of those risks is the property losing some its value.

If you own a rental property that is becoming a drain on your finances, you might be considering selling a rental property at a loss.

While this may initially seem like something you shouldn’t do, it isn’t all bad news. Selling property at a loss does have some advantages.

We are going to look at some of those benefits and how you can navigate selling investment properties at a loss.

The short answer is yes. You can sell any property you own at any time, whether for a gain or a loss. However, if you own investment property, there are certain times and situations when selling at a loss could be better for you.

If you are unsure of your investment strategies or tax situation, we recommend talking with a professional, like a real estate agent, lawyer, or accountant, who can give you the best, personalized advice.

While your circumstances will vary greatly depending on your investment situation, here are some of the most common times to sell a rental property at a loss: