An excellent real estate buying option is purchasing from a tired landlord who owns rental property and has them for rent. Most of these landlords are experienced sellers and know something about real estate investing. It is typically about 3.5 years for a landlord to become a tired landlord. They generally do not live at the property and rarely pay a visit.
What causes a tired landlord? Usually, it is due to the complying with building or community requirements. The landlord may also find he is needing to separate from a partner investor. Such as in a divorce settlement or an inheritance situation. Sometimes it is due to a lack of cash flow and financial troubles. Occasionally, it is due to the property being upside-down on the mortgage.
So why would these properties be a good deal to real estate investors? It may be the property is in need of many repairs and maintenance, or it could be the property was part of an estate and the new owner doesn’t want to be a landlord. Perhaps, the landlord already owns too many properties and wants to get rid of some of them. There is a higher probability that an owner who has had rental properties for 20 or more years has become fatigued and ready to unload his portfolio of properties. You may have noticed that not all of the properties of a landlord are well maintained. There may be some that need to be remodeled before they can be leased. There is a good chance that the landlord would be willing to let go of these properties as-is as it may cost more to repair the damage of the former tenants.
Some of the houses owned by a landlord may currently be rented out by a tenant who continually causes damage to the property or may be delinquent on his monthly rent payments or refuse to move out after their lease is up. Many of these types of tenants are very familiar with the law and can tie the case up in court for many months. Oftentimes, these properties can be acquired by good negotiating skills. This type of property will require lots of clean-up and repair work, in addition to replacement of fixtures and appliances and even re-doing plumbing and electrical services. By doing a good inspection of the property with an experienced contractor, you should be able to determine what it will cost to bring the property up to high neighborhood standards.
In some areas, you may find rental property that has been flood damaged or had fire or smoke damage. After fighting with the insurance company, only to receive a small payment for the damage and facing higher insurance premiums, the landlord is ready to throw in the towel and sell the property for a good price.
To find tired landlords, you may want to check on Craigslist under properties for rent to see if you can find a landlord who is interested in selling some or all of his rental portfolio. Also try networking with your fellow real estate investors in your community.
If you are a tired landlord and looking to unload some or all of your properties, please contact us at 520-220-3334 for a no-obligation offer and see if we can work together to help you recover your freedom.
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