sell

Why I am SELLING My Rental Properties

hey YouTube thanks for tuning in my name

is April Crosley I'm a real estate

investor in Berks County in Pennsylvania

which is a little bit north of

Philadelphia because no one ever knows

where we're located I flip houses here

buy rental properties do a little bit of

private lending we buy small

multi-family we're looking to buy some

mobile home parks and just RV parks and

some larger stuffs if you come across

anything give me a shout and today I'm

gonna answer a question I'm getting a

lot lately from viewers of our YouTube

channel we're always asking me why am i

selling my rentals

if you click like and hit subscribe and

go back and watch some other videos I

probably mentioned in my previous videos

how we've been gearing up and selling

some of our rental properties over the

past couple years

so we've sold I think three last year we

already sold two this year and we intend

to sell two more and these are some

rental properties that we've had

anywhere between like seven and ten

years so I'm gonna tell you why we're

selling those now but first I want to

tell you if you are a newbie which I

love newbies I love newbies because

they're super ambitious and they have

big dreams and goals and no one's

painted them with tons of negativity yet

I love movies so if you're a newbie and

you're just getting into the rental game

it is not easy okay it's not easy at all

it's not for the faint of heart

what's that saying it's very easy

everybody would do it and not everybody

does it there are some people that are

like you could not pay me enough to be a

landlord and I totally understand why

I've been through my share of horror

stories but I'm telling you as a newbie

if you can buy some rentals and hang on

just hang on okay through all the ups

and downs lean on other fellow landlords

whatever you have to do just hang on

through old ups and downs for about

seven to ten years that's if you buy

right that's really when you're gonna

see your properties start to build up

some significant equity that you can

either tap or just keep rolling with

those properties and let them start

paying you

okay so I've just found with my past

purchases that around that seven to ten

year mark is when they start doing

really well for me or it's a good enough

point that I have like a lot of equity

built up in the property so that's what

happened with my rental properties so

let me tell you a little bit about my

history of selling my rentals at first

when I first started buying rental

properties I had a mentor who told me if

you want cash flow to get out of your

job you need to buy in a low-income area

because that's an area that cash flows

it'll be great it'll be fabulous you can

get the properties cheap you can put in

sweat equity so I was like awesome I'm

gonna do whatever this guy tells me cuz

I just want to get out of my job

so we started buying a whole buncha

rentals in a low-income area very

low-income area okay I held onto those

for ten years that's what I bought way

in the beginning when I was first buying

and I was like I totally have the gussto

for this

it'll be fine it was absolute hell so if

you subscribe to my channel you know I

have a previous video on like holding

rental rentals in different areas and

what he wasn't telling me about

low-income areas is that the turnovers a

lot higher the tenants were a lot harder

on the properties so the maintenance

costs were a lot higher there were just

a lot of things I wasn't prepared for

and looking at the numbers on paper was

nothing like what the numbers were

actually like my maintenance cost was

always way higher and so is my vacancy

because I had a lot more turnover

because people tend to be more transient

in this low-income area area so it was

super difficult for me so after 10 years

of hanging on and the reason I hung on

for ten years is because people kept

telling me this markets gonna turn

around this city is gonna be amazing

it's gonna be great just hang on hang on

hang on after ten years I couldn't hang

on anymore

I was exhausted exhausted so after ten

years I sold I think was it seven or ten

units in like

very low-income area so I sold those

then last year I sold a couple rental

properties and this year I sold a couple

more and I'm going to tell you why we're

selling now but it's pretty obvious if

you guys are paying attention to the

market at all I'm in Pennsylvania and I

don't know what your market is like but

in my market it is absolutely berserk

there's not a lot of houses for sale and

there's a ton of people looking I done

of people looking anytime a house hits

the market let me give you an example

like my husband's an agent so there was

a home that went on the market it was a

single-family home hit a buyer there

were like 40 showings in two days people

basically have to move out of their

house if they want to list it on the

market market because there are so many

showings so like 40 showings in two days

like 10 to 15 offers and like probably

more than half of those were above

asking price above asking price no

seller assists no inspections like just

because people are trying to get a house

it's absolutely berserk out there so we

are definitely like way at the height I

think people are spending crazy amounts

of money for houses and you have to know

when to buy and when to sell and you can

hold onto things forever there are

investors that believe that you never

sell you just buy and you hold on and

you just ride it out forever until

you're old and you want to sell I'm not

one of those investors so I kind of like

to sell based on one the market and to

my personal goals and my personal goals

have changed so back in the beginning we

were really into buying single-family

homes and really small multi units and

they did pretty well for me but protip

what you should be doing every year as

an investor is evaluating your rental

portfolio so at the end of the year you

should be looking at your rental

portfolio and saying okay how are my

properties performing and are they cash

flowing for me and if they're not catch

filling for you and they're a pain in

your butt why are you hanging on to them

so that's what

and to us about two three years ago we

started really getting serious about

evaluating all of our properties at the

end of every year and comparing them and

we're like oh this one doesn't really

cashflow with the maintenance we put

into it over the past couple years and

it's just a pain in the butt there's a

lot of turnover and we're not crazy

about the area so we sold them and then

again this year we were like what

properties could we sell this year and

just perfect timing we had two twins

side-by-side if you follow me on

instagram at April Crosley I believe I

posted a picture on Instagram from seven

years ago when I bought these twins it's

like some areas they call them

semi-detached like two side-by-side

houses that are connected and I have a

picture then and then I have a picture

now right before we listed them on the

market so perfect timing because we had

tenants in both sides the one tenant

wanted to move out she was going to like

a relationship split and she wanted to

move out and I was like bye cuz I'm

gonna sell it the turning on the other

side hadn't paid me in months months had

not paid me right and I know you guys

probably watch my previous videos you

know I'm super strict with myself

management super strict

and so Reds do owner before the first

and if they don't pay then I file a

you in a second but if a tenant

communicates with me that they are

having difficulty and this is how the in

time they catch up and we can lay out

some kind of plan I will work with them

and this resident really got me because

she was a single mom and if you know my

story I have a huge soft spot for single

moms so I let it drag out way longer

than I should have totally my fault and

she ended up not paying rent for a

couple months I didn't have to evict her

I actually asked her to leave and told

her we were selling that side so we're

gonna sell her side and she found

another place to live and was totally

fine with that but she went through some

really bad tough situations that were

kind of out of her control and that's

what led to her falling the Hunnam right

so anyway these two properties were a

pain in my butt like I bought them I had

them for seven years at about like the

Year five mark I tried to turn them over

to a property management company

another pro tip even if your properties

are managed by property manager you

should be driving by them to see how

they look so after I turn them over I

drove by my properties to see how they

looked and one of them I knew was vacant

and like they were trying to run it and

the properties looked horrible like

absolutely horrific I was like they are

not taking care of this property at all

so fired my property management company

from those had some tenant issues the

houses were just a pain in the butt they

cash flowed for us but not like super

well so with the timing of tenants

moving out we decided let's sell them

okay just solve them get rid of them and

we renovated them a little bit before we

sold them and we're getting way more

money than we thought we would for them

because the market is crazy so you can

hang onto things forever or you can sell

with the market cycle and right now

prices are at the top you're getting

multiple offers on every property list

on the market and all it makes me want

to do is sell more properties why

because single families aren't really my

jam anymore I don't get enjoyment and

having them we don't have any good

property managers in this area so you

have to basically self manage if you

want to really stay on top of your

properties and it's just a pain in the

butt for me I don't see myself buying

any more of them so it's perfect timing

to get rid of them at the end of the

year when we sit down and look at our

properties my multifamily properties

perform way better for me than my

single-family properties it's not gonna

be like that in every market I'm telling

you right now some of you are gonna live

in a market where single-family

properties make way more sense than

multifamily properties so it really

depends what works in your market when I

first started buying I bought a six unit

then some single families then a three

unit then an eight unit I didn't know at

the time that multi-family was going to

perform better than my single-family but

i after sitting down and looking at the

numbers it was blatantly obvious that

single-family performs way less than my

multi family worse we kept our

multifamily properties so let me just

see what other tips I want to give you

oh also a value

your portfolio based on your goals what

are your goals my whole company name is

lazy girl consulting I don't want to

have to work super hard I like to travel

around the United States and my RV I

like to kind of be as hands off as

possible I love building businesses and

I love having a team but my true love is

private lending and my goal is to grow

grow grow as a private lender and also

grow as an investor by buying bigger

projects like larger multifamily and

larger mobile home parks so some people

have a goal I want to own a hundred

units I was never one of those people

that had a goal like I want to own a

hundred units

I can't wait right now we're holding 40

and that's after selling some in the

cities selling some last year and now

selling some this year and I'm like I

don't really care if I own any more

units around here I kind of want to buy

something in a different area that's

bigger I want to do development or

something I have goals and different

things I'm learning about so just

because your friend might be like I want

to buy a hundred units and that should

be your goal is a hundred units and

that's what's gonna make sub cash flow

but are you going to be happy having

hundred units do you have property

management in your area that can handle

those hundred units for you in my area

not the case at all so it forces me to

kind of buy outside my area or buy

bigger where I can really big bring in a

very professional property management

company so really evaluate your market

and your goals not your friends goals

okay don't make this business about the

number of units make this business about

how your portfolio performs for you I

know people that own ten houses and make

more money than people that own a

hundred unit apartment complex because

their portfolio performs better because

they purchased better so I'd rather have

quality over quantity and right now at

this point in my life I'd rather have

freedom true freedom I don't work on my

properties I don't want to go to them I

don't want to have to deal with them I

want freedom so for me freedom comes

easy

in the form of private lending so if I

can tap equity from my properties by

selling them at crises that are

cray-cray because the market is crazy I

can take that equity and put it in my

private lending bucket and I can do more

private lending or I can use it to put

down on a larger mobile home park or

multifamily property so that's kind of

my thought process behind things I just

want to make sure I'm not missing any

things I took some notes for you guys

okay um yeah I think that's it so you

got it so make sure you evaluate your

portfolio yearly break everything down

see what's working for you and what's

not if you have any more questions about

why we're selling or if you're not

hooked on staying attached and keeping

all your properties forever I think it

now is an amazing time to sell to retail

buyers that want to live in your

single-family homes if you want to tap

some of that equity so for more

information you can follow us on

instagram at april Crossley you can

follow us on facebook at lazy girl real

estate investing check us out at WWE

world rei calm and feel free to email me

your questions april at lazy girl rei

calm because i will answer them on

youtube for you thanks guys have a great

day