John and Kathy Werzynski, a couple living out of state, owned a rental property on 22nd Pl in Mesa, AZ. Managing the property from afar had become increasingly difficult for them as they grew older and were tired of being landlords.
With tenants still occupying the property, they needed a cash buyer who could take the home as-is and close quickly. My team stepped in to help John and Kathy find a solution that met their needs.
The Seller's Challenge:
Out-of-State Landlords Needing a Quick Exit
John and Kathy were looking for a simple, hassle-free sale for their rental property. The house was tenant-occupied, and although the tenants were reliable and paying on time, the couple was growing tired of the responsibilities that come with being landlords.
They wanted to cash out quickly and move on, without the headaches that come with coordinating repairs or listing the property traditionally.
"We were tired of being landlords, and Rafael's team made everything so easy. They worked with our tenants and got us a great price."
John and Kathy Werzynski
Distressed Homeseller
Luckily, they received one of our promotional texts at just the right time. John reached out to our lead manager, who gathered all the details and set up an appointment for our acquisition manager, Oggie, to assess the property and discuss their options.
Our Approach:
Multiple Options and a Flexible Timeline
After speaking with John and Kathy, Oggie scheduled a walk-through of the property. During the assessment, Oggie took several photos and noted that the house was in good shape, with only minor deferred maintenance. Given the property's condition and the existing lease, we presented multiple options to John and Kathy, including a straightforward cash offer of $165,000.
The couple decided to move forward with the cash offer. We agreed to pay all buyer-side closing costs, purchase the property as-is, and provide a flexible closing timeline to accommodate the tenants. We also agreed to a 21-day close of escrow to ensure everything went smoothly.
Oggie had an existing relationship with a passive rental investor who needed to complete a 1031 exchange and was interested in buying a property with tenants already in place. This allowed us to execute a double escrow flip, ensuring that the transaction was completed quickly and efficiently.
Step 1.
Discovery call to understand John and Kathy's needs
Step 2.
Property walkthrough with acquisition manager and initial offer made
Step 3.
Drafted and executed purchase contracts, contingent on inspection
Step 4.
Sent contracts to title company and began escrow process
Step 5.
Communicated with tenants and coordinated a flexible closing timeline
Step 6.
Found 1031 exchange investor and executed double escrow flip
Step 7.
Closed transaction, ensuring all terms were met
The Results That Made the Difference
Our agreed purchase price with John and Kathy was $175,000. After taking possession, we assigned the contract to our 1031 exchange buyer for $190,000. The entire process, from going under contract to closing with our end buyer, took just 19 days.
John and Kathy were relieved to finally be done with the headaches of long-distance property management. They were particularly pleased with how professional and courteous everyone on our team was, and they appreciated that we kept every promise we made.
Cash Offer received
Seller received a fair cash offer of $175,000, providing immediate relief
Tenant Remained
Tenant remained in place, ensuring a seamless transition for everyone
Sale Closed in 19 Days
Sale closed in just 19 days, with no surprises for the seller
“Rafael’s team provided a quick and fair sale with tenants in place!”
We wanted to sell as-is and quickly but weren’t sure if it was possible with a tenant in place. Rafael’s team assured us they had experience buying properties with tenants and offered a price we liked. They closed fast, paid cash, and covered all costs. It was a stress-free process, and we’re thankful for their professionalism.
Top Tips for Selling a Tenant-Filled Home
Selling a property with tenants can present unique challenges, but there are ways to make the process smoother. Here are some lessons from John and Kathy’s case that could help others in similar situations:
top tips for
realty success
Work with a Buyer Who Understands
Selling with tenants in place requires patience, sensitivity and great communication. Make sure to work with buyers who will respect your tenants' needs.
Cash Buyer for Speed & Comfort
Cash buyers can close more quickly and with fewer contingencies, which is especially helpful if you want to avoid disturbing your tenants.
Provide Flexibility to the Tenants
Being upfront with your tenants about the sale and providing them with flexibility can make the process much smoother for everyone involved.
Lessons Learned: Value of Strong Partners
![Lessons Learned Icon [v2]](https://rafaelcarrasquillo.com/storage/2024/12/Lessons-Learned-Icon-v2.png "Lessons Learned Icon [v2]"){kind=icon}
One of the most significant lessons from this transaction was the importance of building strong partnerships. By working with Oggie and utilizing his connections with 1031 exchange buyers, we were able to ensure a smooth sale that benefited all parties involved.
Another takeaway was the importance of being flexible. Giving the tenants enough time and communicating openly helped make the sale process stress-free for both the sellers and the tenant.
Need Help Selling Your Tenant-Occupied Property?
If you're dealing with a tenant-occupied property and want a simple, stress-free sale, my team and I are here to help. We manage everything from negotiations to closing, ensuring a smooth and efficient transaction.