Own Multiple Rentals? Sell the Problem Property

You own 5 rental properties, but one is a problem. It has a problem tenant, low rent, or high maintenance costs. You want to sell it to focus on your better-performing properties. Here's how to sell one property while keeping the others.

Why Sell One Property?

Landlords with multiple properties often have one or two that underperform. These are the properties that: (1) Have problem tenants, (2) Generate low rent, (3) Require constant maintenance, (4) Are in declining neighborhoods, (5) Have high vacancy rates.

Selling One Property: Your Options

Option 1: List on MLS — Takes 3-6 months. Buyer must approve tenant. Complicated if tenant is problematic.

Option 2: Sell to a Cash Buyer — Close in 3 days. No tenant approval needed. No repairs required.

Tax Implications

Selling a rental property triggers capital gains taxes. Consult a CPA to understand your tax liability. However, the relief from a problem property often justifies the tax hit.

Reinvesting the Proceeds

After selling, you can reinvest the proceeds in a better-performing property or diversify into other investments.

Own multiple properties and want to sell one? Alder Heritage Homes buys individual rental properties from multi-property landlords. Call Connor at (559) 281-8016 for a free offer.