Sell or Keep Renting

[Ben H.]

Hello All

I could some sound opinions on the decision I need to make. Over the past 3 years my families goal has migrated from rental property growth to simplify our lifestyles and deleveraging. At its peak I had 4 rentals and am down to 1. I am looking to get out of the landlord business and take a break from real estate to spend more time with the kids. I have long term tenants there and they don’t want to move. I have gone down the path of them buying it but the short story is the Wife wants to live there forever but the husband doesn’t want to pay market value and is happy to keep renting long term to keep his wife happy. Btw, they have 5 kids, most are teenagers. The house is a more expensive house in the low $400s which was the most expensive rental I owned. By selling the property, I would be able to pay off my house and be completely debt free which is the goal. They have pretty much told me i can raise their rent as long as they don’t have to move. Now I am stuck with what to do. If I tell them they have to move, then I am stuck paying the mortgage while I get the house ready with incidentals and take the time to sell it. My thought was to see if they would sign a 2 year lease and put it up on the market for investors only. Anyone that buys it would have immediate long term good renters and cash flow $300 per month while paying down about $450 in principal. The other option is I ask them to move and go through the hassle of selling it conventionally. Thoughts?

[Jonathan W.]

@Ben H. If it’s cash flowing positive and being maintained I see no reason to sell. But if you want to get out of the same and pay off the mortgage then by all means. Don’t do it for the tenant. If you don’t want to landlord then don’t. Hire a property manager or sell even though I see no reason not to but you lack of wanting to keep it