On a number of occasions I bought rental properties, but had no intention of holding them for income. I only wanted to flip the properties to other investors who wanted passive income. In context, I have never wanted to be a landlord and will in another article show you how to make more money in income properties by not being a landlord. In addition, you’ll make money in days not years and never have to cope with tenants and toilets.
I was driving some time ago when I got a frantic call from a young guy who was answering an adverting piece I had out. He blurted into the phone, “I have a home for sale that is rented and I am going to take the highest bidder by the end of today!” I called him back and set an appointment for an hour later.
When I met him I had done some preliminary research on the property and it appeared his grandmother had deeded the property to him and his sister who were both minors at the time. With further research, the grandmother had passed away and her will stipulated that the property be put “in trust” for the brother and sister. What had happened is the probate attorney had simply decided to have the court deed the property to both siblings.
The home was a small two bedrooms and one bathroom home that had been rented to the same family for the past 27 years. The seller (brother) showed me the interior but I couldn’t see behind the sofas which seemed to be everywhere in the house. The back bedroom had wood paneling on the walls and it was being removed by the tenants.
Later I found out that the tenants had been renting the property for 27 years under the supposition that they would be given the home when the grandmother (landlord) died. Since the grandchildren inherited the property, they were bitter about the situation. What I didn’t see was that the tenants had actually started to remove all the improvements they had made over the years and were systematically tearing down the walls of the house!
The tenants had been paying $500 a month for the last 27 years or about $162,000 for a property that I was buying for $30,000. I could understand their bitterness and the brother was only interested in getting his half of the proceeds of the sale. He had a higher offer that he initially accepted but found out that the title to