Being a landlord has its benefits, but sometimes it can be really tough!
People often decide to buy rental properties because they’ve heard it can make them money. No one lied to them! Done right, being a landlord can indeed be very lucrative. However, the YouTube videos and blog articles on the internet talk about rental properties being a source of “passive income”, and nothing could be further from the truth! Making money as a landlord takes a lot of work. If you have found yourself asking “should I sell my rental home?”, we will talk about that here. Everyone loves the sound of passive income! Weighing the pros and cons of real estate investing and what that looks like for many landlords can make your head spin. Are you ready to be a landlord? Or, have you been a landlord for some time now and you are a tired landlord and you are done?
Rental Income Is Not Passive Income!
Let’s talk about this. Owning and managing a rental property is a job. Some of the tasks include:
- Marketing your property
- Interviewing and vetting prospective tenants
- Staying on top of all the legal requirements
- Dealing with difficult tenants
- Ensuring the property is maintained, including routine and major maintenance
- Getting things repaired when they break down
You can choose to outsource this job to a property manager, but that also comes at a cost that reduces the rental income in your pocket.
Small Landlords Are Often One Step Away From Financial Disaster
Most landlords we’ve met have done their due diligence. They have accurately estimated their mortgage payments and all the monthly expenses for their rental properties. They diligently put some money aside from each rent check towards capital expenditure (that roof will need replacing one day!) and also for tenant turnover and vacancy. At the end of the month, they pocket the net proceeds. This income, when it comes in regularly, can be a welcome boost to the monthly budget.
But imagine if the roof were to fail tomorrow. Imagine if a pipe bursts while your tenant is on holiday causing extensive water damage. Or what if a tenant stops paying and Oklahoma eviction laws mean it takes months to get the tenant out, and in the meantime, the tenant completely trashes the property?
If you don’t have money in the bank today for a major renovation of your own home, you probably don’t have that money lying around for your rental property. Measuring the cost of major renovations or capital expenditure over many years is one thing. Paying large amounts of money out of pocket today is a different matter altogether!
Tired Of Being A Oklahoma Landlord?
If the work of being a landlord is getting you down, or if the costs are hurting your bottom line, you might consider selling your rental property.
Investing in real estate is good. Sometimes the “side hustle” is not. Without dedicating quite a bit of time and effort to creating a business by investing it can become too much for one person to handle. It is hard to justify the cost of hiring a rental management company or a maintenance person when you just have a few investments and you need them to cash flow. Yet, most of us who have been down the road of being a “landlord” have at least a few crazy or inconvenient maintenance stories to tell. Not everyone is cut out to deal with the late-night calls to unclog a toilet or the reports of a “small kitchen fire” ….
You Can Sell Your Home For Cash!
Suppose you were selling through a traditional real estate agent. You’d have to wait until the property was vacant, you’d need to get the house ready for sale by doing expensive renovations, and you’d have to pay the agent their commission and also closing costs. It can also take weeks, if not months, to finally get to the closing table, and get your money from the sale.
Selling your home directly to a cash buyer is a much faster process and you will avoid many of the costs of a traditional sale through an agent. There are typically no real estate agent commissions or closing costs. Even better, you can often sell the house in As-Is condition, and without an appraisal by the bank or home inspection. Cash buyers will also often purchase properties that have a tenant in place. This is the benefit of selling directly to a professional property buying company – they understand property as a commodity and are familiar with the challenges of owning and managing rental properties. What might seem like a problem for a family looking for a home, is not a problem to an investor.
Imagine, in just a few weeks you can walk away from your rental property with money in your pocket!
You Can Sell, And Continue To Earn Passive Income!
Another alternative is to sell your property providing seller financing to the buyer. If you are looking for a fast sale of your rental property so you can get away from the stress and expense of being a landlord, this can be a good option.
- If the property needs expensive repairs to get it rent-ready or sale-ready, you could make your property more attractive to prospective buyers by providing seller financing.
- You can sell and close even faster since your buyer avoids the mortgage process through a traditional lender.
- Once financed, the deed and ownership transfer over to the buyer. And you no longer have to deal with tenants and toilets!
- There is a potential to earn better rates than you would for investing your money elsewhere.
- You can manage any risk of the buyer defaulting on their loan repayments, by having a sales contract and promissory note drawn up by a qualified real estate attorney!
Landlord Stress? Call A Trustworthy Partner!
Metro Cash Offer has been around for a while, and we’ve closed over 1200 transactions to date!
If being a landlord has become a nightmare for you, we can work with you to find the right solution!
We will answer any questions and give you more information about how a cash purchase or a seller financing deal can work for you. We can even take over payments on an existing loan you may have.
Fill in the contact form, and we will call you!