You already know that lawsuits are a risk to your assets, but have you ever considered the size of your portfolio?
IN THIS EPISODE, YOU’LL LEARN:
- Why the small landlord stage is so risky
- The unspoken reasons why small landlords sell off their properties
- Why staying small is unsustainable in the long run
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Resources mentioned in this episode:
📲 Click here sign up for my live scaling workshop
🎧 If you have a turnover instead of a renewal, give episode 68 a listen to learn my top 7 Things Landlords Should Never Do During Tenant Turnover (and what to do instead).
Why the Small Landlord Stage is Risky
Being a small landlord is risky. It’s like investing in 2 individual stocks. You need everything to go right. Because one nonpaying tenant, or one unplanned capex repair, or even a property tax hike can put a squeeze or completely wipe out your profits for the year. Sometimes even multiple years.
Now if all you care about is appreciation, then maybe you can eat that. But just about every landlord I know is looking for cashflow.
Why Small Landlords Sell Their Properties
I’ve been on the buying side as an investor and also represented buyers and sellers of investment properties as an attorney. The small landlord who sell their properties say a variation of the same thing.
It just wasn’t worth it anymore.
- Not worth the time
- Not worth the aggravation
- Not worth the loss of money
- Not worth the headache
For what? A net $1000/month? $2000/month? That type of revenue It wasn’t changing their life. Their lifestyle.
Why being a Small Landlord is Unsustainable
The rental revenue isn’t enough to let you or a spouse step back from your jobs either fully or partially.
So you’ve got like the maximum your plate. You’re juggling the rentals and everything that comes with it. The full force of your job and then of course the full force of life.
Just staying a float becomes the priority and getting ahead of things can feel laughable and scaling through it can feel impossible. This ultimately leads to burnout.
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