Rental properties can be a great source of passive income, but there comes a time when every investor wants to cash out and explore new opportunities. Gurj, the landlord of a rental house in Phoenix, AZ, was ready to do just that.
After years of holding onto this rental property, it was time to capitalize on the equity and move on. My team and I stepped in to help him make it happen—quickly, smoothly, and without any stress.
The Seller's Challenge:
Time to Move On from Aging Rentals
Gurj and his partner had owned this rental property for several years, purchasing it when the market was at its lowest in Phoenix. Thanks to a big jump in property values, they saw a six-figure equity gain. But with the tenant recently vacating, maintenance issues starting to pile up, and other new investment opportunities on the horizon, it was time to sell.
"We held onto this property for years, but with the tenant leaving and the work it needed, we decided it was time to cash out. Rafael and his team made the entire process easy and stress-free."
gurj johal
Burnt-Out Landlord
Adding to the challenge was the fact that Gurj's tenants had begun causing issues despite having a property management company in place. They decided it was no longer worth the headache to continue holding onto the property. Instead, they chose to cash out and direct their money elsewhere—preferably with as little hassle as possible.
See It to Believe It:
The Property's True Condition
Check out the real "before" pictures of the property, showing the distress and repair issues that were piling up. These photos reveal why Gurj knew it was time to move on.
Our Approach:
Patience, Persistence, and a Ready Buyer
After Gurj received one of our direct mail promotions, he decided to reach out to see how we could help. For over a year, we maintained follow-ups with Gurj, staying in touch until he was finally ready to move forward. My acquisition manager, Brian, went out to assess the property and discussed the seller’s needs, offering an initial purchase price of $130,000.
The Contract That Sealed the Deal
Here’s the actual purchase contract we used to secure the transaction. This document shows how we locked in the deal with clarity and confidence, ensuring Gurj could walk away without any headaches.
To simplify things for Gurj, we agreed to pay all buyer-side closing costs, use cash or private lender funds to close, and purchase the property as-is without requesting repairs or credits. This meant no upfront expenses or hassles for the seller. The contract was contingent on our inspection, and we all agreed to a 22-day close of escrow timeframe. We discovered that the property was still tenant-occupied during this time, so we needed to verify the lease terms, occupancy status, and rental payment history.
Although we initially had a strategic buyer lined up, they could not close in time due to unforeseen issues on their end. Fortunately, our network of buyers came through—we found another investor, who happened to be one of Arizona's biggest hard money lenders, to step in and close on the property.
Step 1.
Initial outreach from Gurj and discovery call to understand his needs
Step 2.
Property walkthrough 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.
Managed complications when initial buyer couldn’t close, secured a new buyer
Step 6.
Closed with new buyer within 23 days
The Results That Made the Difference
We agreed on an initial purchase price of $130,000 with Gurj. Once our preferred investor buyer stepped in, we executed an assignment agreement for $140,000. Despite facing unexpected issues with our initial buyer, we stayed true to our commitment to Gurj, finding another buyer who could close on time and without any hitches.
This new buyer did a complete gut rehab of the property and was able to resell it for a gross price increase of $64,000. The entire transaction, from drafting the initial contract to closing with the new buyer, took just 23 days. Gurj was particularly grateful that we followed through on our promises, closing as-is and covering all closing costs, which ensured the sale was completely hassle-free for him.
A Winning Offer: $130K to $140K Assignment Profit
Initial offer made at $130,000, assigned contract at $140,000
23-Day Close: No Buyer, No Problem!
Closed within 23 days, despite initial buyer backing out
Full Rehab, Big Payday: $64K Price Increase After Flip
New buyer completed a full rehab and resold with a $64,000 price increase
The Breakdown That Makes It All Worth It
Want proof of a smooth transaction? Here’s the closing settlement statement from the sale, breaking down every detail from buyer costs to seller proceeds. We’re all about transparency—and this document shows just how effortless we made it for Gurj.
“A seamless, AS-IS sale with AZHSS!”
My partners and I owned a rental that needed repairs, and AZHSS made the selling process easy. They kept following up with us for months until we were ready to sell, provided a fair AS-IS offer, and paid all closing costs. Their persistence and straightforward approach were invaluable.
Top Tips for Selling a Rental Property for Maximum Profit
If you're considering selling a rental property, timing and having the right partner can make a huge difference. Here are some key takeaways from Gurj’s case that could help other landlords:
top tips for
sales success
Stay Patient and Be Persistent
Gurj held onto his rental for years, building up significant equity. When he was ready to sell, he made sure to time it when market conditions were favorable.
Leverage a Strong Buyer Network
Having access to a trusted buyer network is invaluable, especially when unexpected complications arise. Working with experienced professionals ensures you can close without major delays.
Sell As-Is to Simplify the Process
Selling a rental as-is, without repairs or credits, can make the process faster and less stressful, especially if you’re dealing with vacating tenants.
Lessons Learned: Follow-Up and Flexibility Are Critical
![Lessons Learned Icon [v4]](https://rafaelcarrasquillo.com/storage/2024/12/Lessons-Learned-Icon-v4.png "Lessons Learned Icon [v4]"){kind=icon}
One of the key lessons from this transaction was the value of persistent follow-up. It took over a year of consistent outreach before Gurj was ready to sell, and staying patient and attentive throughout made all the difference. When dealing with long-term clients, persistence really pays off.
Another takeaway was the importance of flexibility. Even when our initial buyer fell through, we were prepared to handle the situation, bringing in a backup buyer and ultimately delivering on our commitment. This flexibility ensured we didn’t miss a beat, and Gurj got exactly what he was promised.
Looking to Cash Out on Your Rental Property?
If you're ready to cash in on your rental property's equity and want a hassle-free experience, my team and I are here to help. From negotiations to closing, we handle every detail, making the sale smooth and straightforward for you.
