A couple of years ago, I decided to buy rental properties.
- I thought that I would make a nice profit.
I assumed that the rent would cover the mortgage. Once the properties were paid off, I expected to pocket a considerable amount of money. I invested into a building with four units in Colorado Springs. The building was in need of quite a bit of work. Appliances such as refrigerators, ovens and microwaves needed to be replaced. I bought new hot water tanks, had the HVAC system serviced and painted indoors and outdoors. I updated the plumbing and light fixtures. The improvements set my back financially. Getting the apartments rented was more difficult than I anticipated. The renters were also challenging. They called me constantly. They reached out because the sink was clogged, a light bulb was burned out, the door hinges squeaked or there were ants on the kitchen counter. They also wanted luxuries such as a state-of-the-art security system, a barbecue grill and dishwashers. When the rents started coming in late or not at all, the situation started to get ugly. I realized that the renters were not taking care of the property. They were causing significant damage. I started the eviction process. By the time I got the various tenants out of the building, I had a huge mess on my hands. The building was in terrible disrepair. Attracting a buyer would have been nearly impossible. Plus, the buyer would struggle to qualify for a bank loan. My only viable option was to sell to a cash home buyer. This avenue allowed me to avoid a home inspection, appraisal and expensive repairs. I wasn’t even required to haul away the garbage and possessions my renters left behind. Instead of a great deal of time, work and expense, I simply filled out an online form and signed some paperwork at the closing.
