Yes. Not only that, you don’t need to evict the tenant or travel to the State of Missouri to make it happen. Huck Buys Homes can work with you to sell the property even in as-is condition. If there are current tenants, they will stay in place. The best part is the transaction can be managed remotely. Closing documents will be completed using a mobile notary in your home state and the proceeds are wired directly to your bank account after the deal is done. No travel, no problem.
I had a call from a property owner who had a rental house in Kansas City. He told me that he hadn’t set foot in it in about three years. He had since moved to Arizona after retirement but thought renting out the house would bring him some supplemental income. The worst part about it were those invoices he got in the mail from the property manager he hired.
This included the HVAC repairs, lawn violations marked by the city, damage made by tenants. It was at that point when he decided to sell. “I’m just tired of hanging onto the property. I just wanted to rent out the property to make some extra cash on the side and it’s been more of a burden than anything else,” he told me on the phone. I told him that he could sell the property to my team and I at Huck Buys Homes.
When I mentioned this he said, “I’d love to do that but I don’t have the time to fly to Kansas City at the moment”. I told him he didn’t have to because he can still set the property without him ever having to fly out. He’s not the only out-of-state landlord that I have worked with either. I’ve bought properties from people who lived in one part of the country or another. Long-distance landlording is a massive challenge and this client found out the hard way.
At first, my long-distance clients thought property management was a convenient thing to do. Then they see the math. I even hear about the Kansas City property management fees that both out-of-state and locally-based landlords are griping about. So I did some research and here’s what I found:
So for example, if the rent is $1,800 a month, you’re paying $180 in management fees that will add up to around $2,160 for the entire year. Oh I’m not done yet. You have the tenant placement fee that is $1,800 and the maintenance markup begins at $1,500 and goes even higher.
So all of a sudden, you’ll be losing out at around $5,000 or more a year. One of my past landlord clients who lives in Texas told me that he was losing about $6,500 a year on those property management fees. “When I added up the numbers it was easier for me to just get rid of the property than hang onto it for one more year,” he told me. “I don’t even want to talk about the damage the tenants left behind before they were evicted either. That cost me more money than I needed to spend.”
Yes, you could be anywhere else in the United States and you can still get a fair cash offer in Missouri that you can find reasonable. So if you have property in the Kansas City area that you want to sell as soon as possible, we’ve got you covered. Plus, we pay the Kansas City property taxes so you don’t need to.
I had a gentleman who moved to Florida to be close to family, but elected to keep a single-family house he owns in Blue Springs as a rental property. Before he left, he finalized things with the tenant before jetting to the Sunshine State. He hired his nephew to oversee the property and let him know if things got out of hand. “One day things got way out of hand,” he would tell me. “My nephew was dealing with this tenant not paying the rent and the eviction process got ugly. And I was losing money in the process.”
He wasn’t wrong. Evicting a tenant in Missouri from out of state is costly. I have done the math myself and here’s what I came up with:
Notice I didn’t include repairs here. I think those costs are unpredictable. The longer a bad tenant fights you about an eviction, the more costly it’s going to get.
The bad tenants issue can be a challenge to resolve. Though the client’s nephew was able to give the unruly tenant the heave ho, it didn’t take him long to call his uncle and say “I think it’s time you sold this place,”. And sure enough, the deal was done. I saw the damage myself but we still bought it. Yes, we buy houses in Blue Springs that you may have kept as a rental property. If it’s damaged, don’t worry about it. I’ve bought houses in as-is condition that would otherwise sit on the market if you were to sell it on the traditional market.
One of the guys on my team (who will call Jake) and I went on a property discovery about a month ago. The property manager was doing this on behalf of the owner who was living out-of-state. When we got to the property itself, we thought it was just going to be another day. I saw the stickers on the door that indicated code violations. “Let’s see how bad it really is,” I tell Jake. We walked in and we saw the house pretty much stripped to nothing. Next thing I know, I hear Jake letting out a slow, low whistle. The kind that says “whoa, this is going to be a piece of work”. The copper was gone. The electrical panel got stripped. And someone kicked in the back door.
We crunched the numbers to get a good idea of how much damage was done. Here’s what we came up with:
That came to a grand total of $10,350. I shook my head in disbelief. “How can somebody or some people cause this much damage,” I said to Jake. We reported to the property owner and he quickly said it wasn’t worth the trouble keeping the property. He didn’t have to travel back to see how our process works because we explained to him over the phone what we just did. All he had to do was sell as-is in Kansas City, take a cash offer and the property was out of his hands. And we also told him not to worry about the code violations and fines because we would pay them on his behalf.
I will say this, if you have tenant occupied property in Kansas City, you don’t need to evict them. If they’re paying their rent on time and following the leasing agreements, they’ll be just fine. So even if you sell the rental property to us, they’ll be in good hands. However, just as a precaution, I’d appreciate it if you simply let them know ahead of time as a courtesy. Assure them that they are not getting evicted (especially if they are simply following the lease agreement and paying rent).
We’ll purchase the property as they sit. Also, the tenant side will be our responsibility. You get a cash offer and a clean exit. All you need to do is contact us and we’ll perform a property discovery. That’s another thing to mention to your tenants. Let them know that we’ll be by to check out the place while also respecting the tenant’s privacy. But it would be a good idea to inform your tenants to let us know of any potential damages or issues.
Once you get a cash offer and you accept, that’s it. No need to travel, it’s remote closing done properly. You can sign the documents via a mobile notary in your local area and we’ll go from there.
The State of Missouri may require a non-resident withholding tax. However, a capital gains tax could apply if the property appreciated significantly or if you depreciated it over time. The possible solutions are a standard sale, 1031 exchange, or an installment sale. Always consult with your CPA if you have any questions regarding that. But we can handle 1031 exchanges and coordinate with the intermediaries.
No. You can keep them in place and we’ll coordinate with them directly.
I know how bad things can get when a property you manage gets to be a financial headache and you’re not in town to do something about it. If you want to walk away clean with a cash offer in your hands, we’ll get it done. My team and I at Huck Buys Homes are ready to assist you with the property you want to take off your hands. Contact us today and schedule a property discovery with us. From there, we’ll handle the rest.
