Rental Property Benefits: Sell Your Real Estate Portfolio as a Business and Cash Out

That’s just one of the exit strategies for transitional or alternative homeowners. This strategy works for those who have multiple properties or who want to purchase multiple properties with this program in mind. The idea; sell a group of houses as a package. Not just a real estate portfolio, but an active business package with systems, forms, experience, contacts and a proven profitable track record. The result; sell for much more than the value of the underlying real estate alone. As a working model, it generates twice or more the market rents normally charged and is set to be doubly attractive in terms of resale.

Another exit strategy is a modification of the standard fix-n-flip model. Purchase a single distressed property, well situated for public transport and other amenities, rehabilitation for rental level, furnish and equip, fill with tenants in order to attract another investor who is interested in having a transition home, but did not have time to furnish, market or develop referral sources for tenants. Enjoy the increased cash flow this investment generates while you wait for your buyer. The response time has been from 3 to 6 months.

In short, you won’t be selling regular rental units that rent at market rates, you’ll be selling a fully functioning system, one that generates 3-4 times the cash flow of any other home in the neighborhood. The new buyer will pay a premium over normal appraised value, or comparable home values ​​in the area, to acquire such a lucrative producer. The sale is driven more by the methods used to evaluate apartment buildings as good buys, eg area rents, CAP rate, cash back, etc. Don’t you just love creative options?