Real Estate News and Market Moves Week 82

For the final installment of the blog series, “How to Sell Your SFR Portfolio of Rental Assets,” we hear from Auben’s own Founder, Tyson Schuetze. Having spent years owning and managing single-family rental properties, personally and professionally, Tyson has gained valuable insights that he can share with other SFR portfolio owners. Drawing from his own hard-earned lessons, Tyson outlines a prescriptive approach to determining the ideal timeframe for selling an SFR portfolio of assets, advocating for a proactive strategy that considers the economic life expectancy of key systems within the home. Click here to read Part One and Part Two of the series.

Initially, I often found myself wishing someone had shared the reality of owning single-family homes for an extended period—let’s say 7 to 12 years. There comes a point when you’re not just the proud owner; you need to be ready, willing, and able to sink significant amounts of money back into these properties—think around $50,000 to $100,000 per asset. In some instances, that could represent a substantial percentage of your initial investment or even exceed it.

Over the past few months, my thoughts have evolved that many single-family home owners—perhaps more than they realize—overlook a crucial aspect: the ideal time to sell. The sweet spot is when repair costs are low, rental income is on the rise, your depreciable basis still has some juice left, and you spot better opportunities out there.

From my own hard-earned lessons, I’ve learned that you can, in fact, be pretty prescriptive about the timing of a sale. Ideally, you’re looking at a window of 5 to 7 years post-acquisition or renovation. This timeframe allows you to assess the economic lifespan of the systems and mechanicals involved. It’s all about being proactive and making informed decisions to maximize your investment, tracking and analyzing what many investors tend to overlook. At Auben, we strive to ensure that our expertise, enriched by valuable lessons learned over time, becomes a benefit for you.