I Don’t Want To Be A Landlord Anymore

How to sell your rental property AND still make money from it every month!

I don't want to be a landlord anymore. Sell your rental and still make monthly money from it.
Learn how to sell your rental property and still make income from it every month for years.

Have you typed into GOOGLE, “I don’t want to be a landlord anymore?” 

If you like the idea of monthly income from rental checks, but don’t want to be a landlord anymore, there is a way for you to accomplish both!  It is possible for you to completely sell your rental property, AND continue to earn monthly money from it.

Owning rental property and earning that monthly rental income can really be a game changer for your family’s wealth.  The long-term benefits of owning income generating real estate can span generations, but the short-term headaches can also be a complete nightmare.  Becoming a landlord is not for everybody.

The primary reason why you don’t want to be a landlord anymore is Stress!  

When you are a landlord and have real legal responsibilities to your tenants, that is stressful.  When the proverbial toilet backs up, or the roof leaks, or rodents gnaw their way in, you must do something about it.  Immediately!  If you don’t have a large emergency fund stashed away, you could be on the hook for very expensive repairs.  My first rental property was a nightmare like this.  Virtually every single month my property manager would call with another problem.  We replaced both stoves, patched the roof, fixed the deck, replaced a ton of windows, and there were still problems almost every month.  Every time it rained or high winds were expected, I would lay awake at night worried about what the morning would bring.   Yes, I like the idea of monthly passive income, but not at the expense of my mental health. 

What are the risks of being a landlord?

The risks of being a landlord are not many, but they can be financially devastating. 

One of the main risks of being a landlord is having your tenants fail to pay rent.  Even if you own your rental property outright, you still owe property taxes and insurance.  When your tenants fall behind on the rent, you will have to come out of pocket for those items.  If you have a large mortgage, or need to make major repairs, but your tenants are not paying, it can be quite stressful and dangerous to your financial situation. 

How can you sell your rental property and still make monthly money from it?

Ask yourself this question.  When the bank lends money in a mortgage to buy a property, are they responsible for the propertyThe answer is no

Does the bank make monthly income from the property even though they don’t own it? The answer is a resounding Yes!

The bank gets paid their monthly income regardless of vacancy or non-paying tenants.  Wouldn’t you like to be in a situation like that?  Well you can!  There are ways that you can fully sell your property, so that you are not responsible for taxes, water, sewer or anything, but still receive monthly income from it for three, five, ten, or thirty years or more!  Such an arrangement is commonly referred to as Seller Financing or Owner Financing.  Seller and owner financing are extremely common in the commercial real estate world, and are just as applicable to residential real estate.  As a seller “holding the note” in seller financing, you are fully secured on title, just as a bank is.  Legally, no one can sell the property without first paying off your note first.  

What are the benefits of selling a property with owner financing?

The benefits of selling on owner financing are as follows:

  • With owner financing, the buyer and the seller agree to whatever terms make sense for them.  They are not bound by any bank or lending institution rules.
  • With owner financing, the seller not only receives the sales price of the property, but they also earn EXTRA income in the form of interest.
  • With owner financing, capital gains taxes and depreciation recapture taxes can be spread out over many years as opposed to being paid at once. 
  • When selling on owner financing, there is no more responsibility for tenants. There is no more worry about repairs, maintenance, vacancy, or missed rents.  You get paid every month regardless of what’s going on with the property.  
House bought as is
This house was inherited and owner unable to manage from out of state

How Does Owner Financing Work

The steps of selling your home on owner financing are really quite simple. You and your buyer decide and agree on a final sales price for your home. Next you agree on terms for the mortgage. The primary points to discuss are:

  • Down Payment (if any)
  • The Term (length) of the loan
  • The Monthly Payment

A handy tool to use is this Mortgage Amortization Calculator. Just put in some information and it instantly spits out everything you need.

Next, make sure you have everything in writing and all details are agreed upon, and bring this to your attorney or title closer. That’s it!

The rest of the sales process is exactly the same as any other type of sale.

Frequently Asked Questions About Owner (Seller) Financing:

Q: Can I sell my house with owner financing when selling my home with a REALTOR?

A: Absolutely! This is just a financing method, it is not affected by your method of sale

Q: Can I sell my home with owner financing after the tenant moves out?

A: Absolutely. In fact, it’s much easier to sell a home for more money once the tenants have moved out. You might get even more favorable terms.

Q: If I sell my home on owner financing to a new landlord, and the tenants stop paying their rent, do I still get paid?

A: Yes! You have become the bank. If your tenants stopped paying you, you didn’t get a reprieve with the mortgage bank, and neither does your buyer.

Q: If I sell my home with owner financing and the buyer stops paying me, what do I do?

A: This isn’t really any different than if a tenant stopped paying you. Dependent upon your state laws, you would evict or foreclose on them and take the property back.

If you would like to learn more about selling your rental property, especially about how you can sell your rental property and still make money from it, give Academy Home Buyers a call at: (757) 755-5587 Or you can complete the form at the bottom of this page and we will contact you right away.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

Get Your FREE Offer 💰...

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Academy Home Buyers, Real Estate Investing, Virginia Beach, VA