Opened escrow on one of my own rental properties!
I used to say — never sell!!
(I still do say that, mostly.)
But I am also looking for ways to simplify my life and invest in more passive income like real estate syndications. Rental properties are a lot of work, folks, don’t get it twisted!!
This is one of my early out of state rentals. I bought it, renovated it, and rented it out. (Sight unseen, by the way, because I have such a great team out there.) It was super trashed, and I got it all looking nice.
And the nice thing about making it look nice, is that it’s worth more!
(This is the BRRR strategy in action by the way – buy, renovate, rent, refinance, repeat. Then you reinvest your cash in another rental. Except instead of refinancing, I am selling…but in a special way I’ll explain below. So kind of like a slow 2 year flip where I’m still reinvesting in rentals and focused on cashflow.)
*SELLING*
I have a commitment to give my tenants right of first refusal before I sell any property. Basically, I’ll support them in getting pre-qualified — and credit closing costs back to them — so they can purchase the house with as little as 1 month’s rent down payment.
This one happened to be vacant right now, so I am selling it to a fellow investor. He’s super dope and has been killing it in the BRRRR game himself, so I was excited to make this deal happen.
We’re doing what’s called “seller financing.” Meaning – there is no bank. I am the lender…
So I still achieve my goal of passive income each month, but instead of rental income, I’m getting interest payments.
This is possible when you own the property free and clear. I get to benefit from passive income, and the buyer gets to buy a property with very little down, and doesn’t have to go get a loan and pay the bank a whole bunch of closing costs and lender fees.
It’s a win-win for me and for the buyer. 😊
And maybe one day the tenant will get to buy it, all fixed up, for less than they pay in rent, and it will come full circle as ethical investors 💯 💯 💯
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