I hate my rentals- should I just sell and be done with this game?
I'm looking for opinions on if I should sell my rentals. I have 5 single family homes and I hate them. They are under quasi-management (long story) and largely I don't have to babysit them, but every notice of an issue makes me hate them more. Most recently a tenant moved out and left the house full of roaches and another one just had an animal in the attic that somehow knocked down the ceiling light in the kitchen. My taxes are overly complicated and worst of all these houses really only break even for us every year. I know these are basic rental type things but I with a full time job and young kids and my own primary home that needs a lot of attention it just all feels like a huge strain to do anything at all for the rentals.
BUT, we have great interest rates on the mortgages, really good tenants, and the rentals won't always break even-- they will go up in value and in rent. My kids won't always be little and needing so much and maybe I'll even get to retire early with the income these houses make.
Honestly I'm scared that if I get rid of them all now I'll be kicking myself in 10 years for how shortsighted I was.
Right now though its just so hard.
If anyone has been where I am now with just being fed up with it all and you can let me know how you handled it-- or if you have any sort of perspective you can offer I would really love to hear it.
Hey Tiffany,
So sorry to hear you're burned out. As a person who also does live-in flips and renovates rentals, I get it. I think there is a chance that you don't actually hate your rentals, but rather, you hate where your mental health/stress level/amount of free time is. The rentals are the easiest thing to ditch and your brain has decided that you need to let something go... which is easier if you hate it rather than still love it (as you mentioned you previously did).
I think once you are over the remodeling hump, take a pause, enjoy some "free time" and less stress, and then decide a few months after that if you want to sell. It's just a matter of getting through whatever remodel(s) you're doing.
For now, it sounds like you're making enough money that you can pay people to do the tasks for you. Forget the immediate money and pay people to take care of the things that are feeling heavy. That can look like having a "complete" property manager or just calling reputable companies for all issues that come up. Also, maybe use a couple of vacation days to just "be" and try to recharge.
When you have a little extra "water in the well", things like broken light fixtures, random animals, and so on aren't a big deal. If they are, keep the full service PM.
All that being said, if you are at "the very end of your rope" do whatever you need to. Sometimes there just isn't enough gas in the tank to get over the next hump and if you've hit that point, do whatever you need to to lighten your load.
Before you sell... please talk to your accountant about the capital gains and depreciation you will have to pay back... that might frustrate you more than fix up issues. I am right there with you... but getting closer to retirement and my real estate has FAR Outpaced any other investment I could have had... hang in there...at least you have property managers... I have been dealing with all the tenant and repairs myself... and at times will a full time career...it sucks.- Krista
Sell them , if you dont love them and you would not buy them again, Sell!! There are sooooo many other types of RE to buy. Ive owned them all in 8 states, now I only buy things that are great, great locations, interesting, fun to use(Vacation Rentals). Land, I own some of the most amazing parcels. You can make the same or more in many different areas, often the more specialized the more appreciation potential. I hope you find what makes you happy
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Real Estate Agent
- The Resort Team by EXP Realty
Quote from @Carl W.:
You say you hate them and hate is a very strong word. But an important one. Listen to your gut. You should not hold on to something you hate simply out of fear of the unknown. Free yourself.
If you're uncomfortable letting them all go, lighten the load and let one or two of them go instead. You might actually find you love the feeling of letting them go and eventually get rid of them all. You can take your money and invest in other ways. Best of luck!
Lighten the load is good advice. Sell the most problematic one first, see if that makes enough of a difference. Be sure to screen your tenants, replace over time with higher quality ones.
Yes, over 10 years you'll be kicking yourself. Today timing might not be right for you - young kids and other responsibilities tie you up.
Another move you can make is to sell one and pay off another one entirely… no mortgage or interest payment on a unit does wonders for your cash flow!
Hope it helps! Randy
Love that idea
Quote from @Tiffany Roberts:
all of them seem like they should cash flow but the reality is our business bank account never reflects that, but it could be bc we are constantly in the process of remodeling something, I'm actually not sure.
Are you remodeling b/c you think the tenants are demanding/ deserve nicer places to live or b/c things are falling apart? Once my parents told me our tenants bathroom was nicer than their own I quit upgrading unless I had a complaint or there was a serious issue.
#5 General Landlording & Rental Properties Contributor
When I first started, my lease was one page. If I were to sign a new lease today it could easily be 100 pages. I get it what you're saying. Seattle has become the worst place in the world to be a landlord. With each house sale I've felt a great relief. It's getting more difficult for anyone to afford a house. For the uncertain future, you might want to keep a couple properties for your kiddos??
Hello,
What did you end up deciding to do, if anything?
Let me know if there is anything you need help with related to your houses. I know how it can be, not sure if you’re close to the properties or not. I’m located in Jackson, not to far away if you have some issues you need resolved. Looking to network with more landlords in the area. We own STRs and MTRs in our area. We love the MTRs so Much. Maybe we can connect on that sometime! Maybe an option for a property or two?
"worst of all these houses really only break even for us every year"
Honestly, that's the part that sucks the most, regardless. Hassle or no hassle. And as far as people telling you about "appreciation", remind them you are in MI, by the way.
If you can't fix the profitability, what's the point. Are you mortgaged to the teeth? did you over pay? or both?