I’ve been an owner for 15 years and I’m finally selling

  • I’ve been a property owner for 15 years and my property has earned extra income, but I’m ready to sell.
  • It’s a good time for sellers, for one thing, and I’m tired of dealing with my rentals.
  • Real estate is not “passive”, and it becomes difficult to find professional help.

There are countless ways to work for financial independence, and sometimes I feel like my husband and I’ve tried them all. We’ve worked 9 to 5 regular jobs, juggled various side businesses, and invested in stocks, bonds, ETFs, mutual funds, and even cryptocurrencies. We have also been freelancing in some capacities for over a decade, which often feels like we have 10 different jobs at once.

We purchased some rental properties in 2007 and 2008, which we are still dealing with today. However, we are currently in the midst of selling all of the single-family homes we own outside of our primary residence, and for more than one reason.

This might sound crazy since there are all kinds of financial experts recommending it login in The owner is now working. From blogs to message boards to Facebook groups for early retirement, it seems like real estate investing has been all the rage in the past few years.

However, I was never afraid of going against the flow. Having been a landlord for over 15 years, I get a little upset when I hear (or read) the so-called “experts” in the early retirement crowd talking about buying rental property as if they were offering the ultimate path to quitting 9 to -5.

The truth is, being a landlord is a lot of work, and it may or may not be worth it for you depending on your tolerance for risks, your goals, and your willingness to deal with daily hassles and repairs.

Here are the reasons why we are ready to stop being realtors as soon as possible, and why investing in real estate is not for the faint of heart.

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Reason #1: Now is a great time to sell

The main reason we sell rental properties at the moment is the same reason that now is not the time to invest in rental properties in many markets.

Real estate prices are quite high across the country, and they are very expensive in many major cities across the United States. In fact, the National Association of Realtors (NAR) reports that the median sales price for existing homes increased 10.8% nationwide from August 2021 to August 2022. That’s crazy enough, this increase comes after 125 consecutive months of increases before that .

We’re finalizing the first rental home we were able to sell in early September, and the selling price is more than double what we paid for the home in 2008. Since we bought the home, we’ve also done minimal updates and repairs other than replacing the HVAC system. $5,500 and get a new roof covered with homeowners insurance. Since the house was our first major residence when we bought it in 2008, we only put together $3,000.

Our last group of tenants also lived in the house for 13 years, so they basically paid us. At the end of the day, all of these factors tell me that we are selling at a fairly ideal time financially.

Finally, we’ll walk away from selling our first rental property for about $150,000 after accounting for income taxes, realtor fees, and other fees.

Reason 2: Being a landlord is not negative at all

The second reason we sell our property is the fact that we are tired of dealing with it. No matter what anyone says, being a landlord is not a negative thing at all – even if you have good tenants, or if you use a management company.

The truth is, you’ll get calls and emails about things from time to time, and often times not working into your schedule at all. Over the past few years, we’ve made calls to service or repair HVAC units, deal with a fallen tree, and negotiate with tenants who couldn’t make their monthly payments on time.

My rental properties provide me with income that can make up for this hassle, but there are more passive ways to invest that will never require a phone call or any work on my part. For example, the $150,000 I would have to invest from the sale of the first home would provide a constant return of $9,000 annually if the market yields 6%.

Considering I’ll never have to deal with a leaky ceiling or a clogged sink, that’s a no-brainer for me.

Reason #3: It’s hard to find professional help

Most of us know that it’s hard for companies to find help now, and you see it almost everywhere. The same is true when it comes to skilled labour, and we quickly discovered this when we went to prepare the first vacated property for sale.

Do you know how difficult it is to find professionals willing to perform a drywall repair? painters? Someone to take on the basic handyman’s duties?

It’s totally impossible now, and that’s even more true when you need people for one-time jobs without warning.

My husband ended up taking an entire week off our work to do basic errands around the house and paint the interior before we put up our rent for sale. He didn’t want to – he It had to Because we couldn’t find anyone else.

Also, this has been the case with every repair we’ve had to make in the past few years. Simply put, not being able to find help when you are willing to pay too much becomes obsolete.

Reason 4: Every owner has a horror story

The final reason we’re selling is the fact that every owner has a horror story, and we feel like we’re going to have a bad experience again at some point.

We had a family of renters who left one of our property with nearly $6000 damaged in 2009, and the situation was just too stressful to deal with. Not only did they leave the house with dirty and torn carpets, all the interior doors were missing, the front window smashed and the outside door smashed.

We ended up replacing almost everything on the property before we could rent it again, including the floors, doors, many windows and even the kitchen countertops.

Having had excellent tenants over the past decade or so, we know we’ll never want to deal with that again. on sale now Before We had another bad experience, we wouldn’t have to.

When we were investing in rental properties in our twenties, we thought we’d use the rental income to help pay for our early retirement. But now that we are older, we have found that there are many ways to invest that are more passive, and the hard work of being an owner is no longer worth it to us.

While selling one of our properties within the next few weeks, we will be working on getting the other property for sale when the tenant’s current lease expires later this year. Once that real estate is offloaded, our plan includes investing our profits in boring index funds and never looking back.

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