Have you been lured into rental becoming a landlord in Indianapolis, Noblesville, Carmel, Westfield, Greenwood, Greenfield via property investments? If so, how is it going? Many folks are experiencing mixed results. Do you own property that was purchased from a management company that has promised to handle everything except your monthly check cashing? Again, how is it going? For some people, owning a rental property might be a brilliant personal financial move. If you’re in good financial shape already, have spare time on your hands and don’t mind handling maintenance emergencies. Or for those who can devote a significant amount of time finding the right property to rent, you too, are likely to be experiencing a very nice profit from rental property. However, not everyone I meet is currently in that advantaged group. Many simply want to sell their rental property for cash and be done with it.
Few relish a late night interaction between tenant and landlord. Others are not in a financial position to sustain enough rental property to obtain notable monthly income to justify the hassles. Many are stuck with one or two “bad” properties that offset gains and find themselves wanting a way to jettison these losers. Still, others are losing confidence in their local real estate market as the place to stash hard earned money long term. So, if you are ready to unload some rental property for cash, read on, and if some of what I have to say sounds familiar to you, then maybe you too will want to contact Ittenbach Capital to unload some rental property quickly and painlessly in short order.
My first experience with rental property investing was after graduation. A college “buddy” of mine started buying up condominiums and small houses to use as rental property income. These rental properties were to serve as a supplement to his livelihood, as he seemingly spent little time taking care of the properties. The burden of collecting rent, and so on only demanded about a few hours a week. I always thought that this guy had things figured out. Working about a couple of hours a week and constantly receiving bonus income, plus he would eventually own all those houses that he could sell at retirement. But his reality was different. Looking back, it was obvious that he never had a lot of extra money, even when his rental “empire” was in great shape. His eventual outcome of subsistence living left me with something of a dual view of investing in rental properties.
Right now, a lot of individuals like myself, those with retirement funds, are being lured into buying rented income property from residential management companies. While they offer “turn-key” property management; where all you must do is collect your monthly income checks, problems abound. At times, my fellow investors are purporting that some of their rental properties are generating more costs than expected and, on occasion, some have become a big liability or even a total loss. As it has turned out, profiting in the residential investment arena is dependent on many very important variables. Unfortunately, few of the investor / property management companies are revealing any of them to potential investors like me. Gosh, I hate learning the hard way; every time. And none of them want to buy any back!
Bottom line profit taking is a variable thing, as it depends heavily on where the rental property resides and the actual condition of the property at the time of acquisition. In some areas, property values rise significantly, while in other areas, property value remains flat or slide downward. Ideally, rental property value holds pace with inflation at a minimum. At least, was promised at the time of investment. Often, property values do not keep up with inflation. Renters don’t take care of your property and neighborhoods of rental properties can fall asunder quickly. Actual property value losses are likely mitigating any purported depreciation advantages. If you did not perform or oversee the property’s renovation, chronic repair expenses quickly erode your monthly income checks, if not, completely wipe them out by year-end. Just yesterday, an investor was complaining that while his first year’s experience was impressive, a new HVAC system and roof completely wiped out all income earned to date on his property.
Tenants never guarantee to pay their rent. Even in the best of times and even with the (seemingly) best tenants, that revenue stream is far from guaranteed. Sure, sometimes you’ll get a great tenant that pays their rent on time for years and years, but that seems to be a rarity to me. Some tenants just won’t pay regularly, and others just stop paying! You’ll be out several months of rent and the time spent dealing with their non-payment, eviction, and post-eviction cleanup. An investor called me this morning and was complaining that his tenant just up and vacated the property. Three months later, when unanswered rent collection efforts required a personal visit, a completely vandalized home will likely cost him tens of thousands of dollars.
Regardless of whether you have people in the house or not, you’ll still be facing the cost of property taxes, the cost of insurance on the property, and the cost of any homeowner’s association fees associated with the property. These costs are not insignificant. For example, insurance on a rental property is usually around 25% higher than it is for a normal homeowners’ policy and property taxes are double that of a homeowner. If you have been caught without a tenant or with a tenant that’s not paying up, you have quickly experienced fierce negative impact on your finances. Those bills come in regardless of whether there is a tenant in the property or not. It’s especially painful when the beauty of rental property ownership costs starts coming directly out of your pocket.
So, if you catch yourself saying… “if I were at a different stage in my life, I might relish the experience and challenge of taking on a rental property, but it’s just not a good fit right now.” Call Ittenbach Capital at 317-731-2540 to team with their residential experts, who can take on all unwanted property with a single cash transaction. Become Free Again! Click or call Ittenbach Capital Now!!! Freedom from all the problems of being a landlord is a simple cash transaction away.
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