Reasons to sell a house in Scranton you can no longer afford.

Any investor that owns a single or multifamily rental house in Scranton like a duplex, one key point is to know is when it’s time to sell. And that time is when the investor isn’t making money. Better Homes & Gardens recently contacted our lead investor and business owner Ryan David, who provided his expert opinion on multi-family housing.

What is a multi-family home? “A multi-family home is a single house or single building that has separate living areas within the same structure,” says Ryan David, the owner of We Buy Houses In Pennsylvania. “For example, think of a large single-family home cut into pieces, that would allow different tenants to live in a separate apartment under one roof.”

What should an investor do if a rental property doesn’t produce income?

If the wrong rental is purchased, it might hinder an investor. How could this happen? If a real estate agent shows a new investor rental properties like duplexes, triplexes, or even single family homes that are not producing cash flow every month, that’s a recipe for disaster. A real estate agent wants a commission and therefore will show as many properties as it takes in order to find a suitable one. What is absolutely critical, is that any single family or multi-family investment property needs to produce income.

How can a landlord know they are making money from a rental?

But how can someone tell if a property is turning a profit? Thankfully, the formula is very simple. One of the most basic ways to see if a property is “cash-flowing”, AKA turning a profit looks like this: Add together all monthly expenses. This included any of the utilities the landlord is paying for the tenant, along with all taxes, insurance, sewer, and mortgage debt.

Once you have a total for every possible expense, the next step is to add up the total for all the rents that are being collected from the tenants. Next, take the rental amount from the expenses and you are left with the Net Operating Income, also known as NOI. This is the most basic way an investor will be able to determine if an investment property is turning a profit or not.

Everything mentioned above is critical to consider when buying an investment property of any kind. An investor has plenty of scenarios to consider before taking up the mantle of landlord.

Thinking of selling an investment property in the Scranton area?

If you’ve even considered selling a rental property you own, then you need to call us right away. At We Buy Houses In Pennsylvania, we pay top dollar for rental properties in Scranton, Wilkes Barre, and surrounding areas of NEPA. If you are a tired landlord, have a problem tenant driving you crazy, or have a trashed rental property, we can provide a cash offer quickly, but more importantly, we can end the problem that’s causing you stress.

Whats the best way out from a rental home not making money?

That’s when you should call us at 570-333-8050. But why would we want to purchase your rental property that isn’t producing a profit? There’s a number of factors. They include:

• The property was purchased at too high of a price and cannot pay its own operating expenses. This happens from time to time, especially to new investors that don’t understand that you make money when you buy a property because this sets the landlord up to make a profit from the start.

• The property could be better managed. For example, shared utilities could be separated and then paid by the tenant, thus reducing expenses from the landlord.

• The rental property needs too many repairs and the property is consistently getting nickel and dimed to death, not making any profit.

• The tenants of the rental property are problem tenants or have excessively damaged the property.

• Problem tenants have not paid rent in forever and are being thorns in the landlords side.

• The rental property is located in a bad part of town.

• An investment property was inherited from a relative and the current owner has no interest in being a landlord or an investor. For a no-obligation cash offer on your house, give us a call. Our phone number is 570-333-8050 .