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I’ve Been a Landlord for 15 Years and I’m Finally Selling

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  • I have been working as a landlord for 15 years and am making extra income from a property I own but am ready to sell.
  • For one thing, it’s a good time to be a seller and I’m tired of dealing with rentals.
  • Real estate isn’t “passive” and finding professional help is getting harder and harder.

There are countless ways to work towards financial independence and it can feel like a husband. We have her usual 9-to-5 job, multiple side jobs, and investing in stocks, bonds, ETFs, mutual funds, and even cryptocurrencies. We’ve also been self-employed in some form or another for over ten years, and it often feels like we’re doing ten different jobs at once.

we too bought some rental properties It happened in 2007 and 2008 and is still being addressed. However, we are currently in the process of selling both of the single family homes we own outside of our primary residence for multiple reasons.

It probably sounds crazy considering all sorts of financial experts recommend it. come in Current landlord. From his blog to his messages board to his early retirement Facebook group, real estate investing seems to be all the rage these past few years.

But I have never been afraid to defy you. As a landlord who has lived with her for over 15 years, I cringe when I hear (or read) so-called “experts” of early retirees talk about buying a rental property. -Five.

The reality is, being a landlord is hard work and may or may not be worth it, depending on your risk tolerance, goals, and willingness to deal with routine hassles and repairs.

Here’s why I’m ready to quit being a landlord ASAP and why. Real Estate Investment Not for the faint of heart.

Reason #1: Now is the perfect time to sell

The main reason we are selling rental properties now is the same reason that in many markets now is not the best time to invest in rental property.

Real estate prices are fairly high nationally and downright prohibitive in many major cities across the United States. actual, National Association of Realtors (NAR) Report The median sales price of existing homes rose 10.8% nationwide from August 2021 to August 2022. Remarkably, that increase marked the 125th consecutive month of increases before that.

We have finished selling the first rental homes that we were able to sell in early September. The sale price is more than double what he paid for the house in 2008. Since purchasing the home, we have also done minimal updates and updates. Repairs other than replacing the HVAC system for $5,500 and getting a new roof covered by homeowners insurance. This house was our first primary residence when we purchased it in 2008, so we only had $3,000 on our minds.

Our last renter also lived in the house for 13 years, so they essentially paid it off for us. This indicates that the product is being sold at a slightly optimal time.

After all, after factoring in income taxes, real estate brokerage fees, and other costs, you’re walking away from selling your first rental property for about $150,000.

Reason #2: Being a landlord is never passive

The second reason we sell properties is the fact that we are tired of dealing with them. No matter what anyone says, being a landlord is never passive. Even if you have a good tenant or use a management company.

In fact, you sometimes get calls and emails about things that often just don’t work out with your schedule. Over the past several years, I have handled or repaired HVAC units, dealt with fallen trees, and handled phone calls negotiating with tenants who failed to make their monthly payments on time.

My rental property provides me with income that can make up for these hassles, but there’s more passive investment method No phone calls or work on my part required. For example, the $150,000 that must be invested from the first home sale yields a steady return of $9,000 per year if the market yields 6%.

Considering I don’t have to deal with a leaky roof or a clogged sink, it’s a no-brainer for me.

Reason 3: Difficulty finding professional help

Most of us know how hard it is for businesses to find help right now, and we see help everywhere we go. The same is true for skilled workers. This was immediately apparent when I went to prepare my first vacant house for sale.

Do you know how difficult it is to find a professional willing to do drywall repairs? Anyone up for basic handyman tasks?

Absolutely not possible at the moment, especially if the job is one-off and you need people without notice.

My husband ended up taking a full week off of our business to do basic handyman work around the house and paint the interior before putting the rental up for sale.he didn’t want to — he had to Because no one else was found.

Also, this applies to all repairs that have had to be made in the last few years. Simply put, being willing to pay and not finding help means getting older.

Reason 4: Every landlord has a scary story

The final reason we are selling is the fact that every landlord has a horrible story and at some point we feel we have to go through a bad experience again.

In 2009, a family of renters evicted one of our properties, resulting in approximately $6,000 in damages. Not only did they leave the house with the carpet dirty and ruined, but all the interior doors were missing, the front window was broken, and the exterior door was broken.

We had to replace almost everything in the property before renting it again, including floors, doors, some windows and kitchen countertops.

After having excellent tenants for the past decade or so, we know we never want to deal with it again. Previous We have had another bad experience, but it doesn’t have to be.

When I was investing in rental real estate in my twenties, I thought about doing something with the rental income. pay our early retirementBut now that we’re older, we’ve come to realize that there are plenty of more passive ways to invest and that the drudgery of being a landlord isn’t worth it to us anymore.

One of our properties will be for sale in the next few weeks and we are working to have the other property available for sale when the current tenant’s lease expires later this year. Our plans include investing our profits in boring index fund and never look back.

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