April 14, 2014
Selling a Problem Rental Property
When Jessie found out she was going to the University of Maryland after her 2011 high school graduation, her dad saw what he thought was a great investment opportunity. He recently inherited a sum of money from his parents and decided using it to invest in real estate would be a safe bet. His idea was to buy a three bedroom house in College Park and have Jessie live in one room while renting out the other two rooms.
Jessie wanted to live in the dorms where most other freshman lived but after some convincing from her parents, she agreed to live in and help manage the house. Her dad was excited.
Not being a landlord or a homeowner previously- he had no idea what he was getting himself into.
They were able to close on a home in August, which actually had four bedrooms, just in time for Jessie to move in and find some roommates.
After two semesters of homeowning and landlording nightmares- including late payments, parties, and damage to the house- they decided that the house was not such a great investment.
Jessie’s parents ended up putting all of their revenue from tenants right back into the house and actually had to dip into their savings to deal with house related issues.
While studying for exams at the close of the spring semester, Jessie was very distracted because of issues with her latest roommates who had not yet paid that month’s rent. She googled “How to deal with bad tenants” and found a few good websites and blogs. But what was more interesting was an ad on google which read “We Buy Houses Fast for Cash!” They never considered selling the house before but after overcoming some initial skepticism, Jessie decided to call the number on the ad, just to see what the offer would be.
So she dialed the number for 4 Brothers Buy Houses and spoke with Jon. After describing the house over the phone, Jon was able to give her a ballpark offer on the house. Even though he mentioned the number might rise or fall after a home inspection, Jessie went to her parents with the idea. Her dad was surprised that Jessie even considered such a strange advertisement, but after hearing the cash offer, decided to speak with Jon himself.
After a short conversation in which Jon explained that 4 Brothers Buy Houses would buy the house quickly for cash, pay all closing costs, and takeover tenant management, Jessie’s dad decided to go for it.
A short ten days later, they closed on the sale and Jessie moved home for the summer.
Real estate investing can be tricky and many people jump in too quickly. If you are managing or living with bad tenants and don’t know what to do, consider calling 4 Brothers Buy Houses. You never know, we might be able to offer more than you would expect.