Sacramento Case Study: Helping an Out-of-Area Landlord Sell a Tenant-Occupied Rental Property on Mary Lou Way

Property Snapshot

Address: Mary Lou Way, Sacramento, CA
Property Type: Single-family home
Bedrooms/Bathrooms: 3 bedrooms, 2 bathrooms
Square Footage: Approximately 1,200 square feet
Year Built: 1971
Seller Situation: Tired landlord living out of the area
Property Condition: Outdated interior and exterior, needing updates and remodeling
Closing Timeline: Three weeks from initial call to closing
Post-Closing Occupancy: Tenant stayed for 30 days after closing
Renovation Investment: Approximately $75,000

The Situation

The owner of this Sacramento rental property had been a landlord for many years but was ready to start a new chapter in her life. Living outside the area made managing the property more difficult, especially when issues arose with the tenant.

The tenant would occasionally fall behind on rent and then catch up later. While the situation was manageable, the uncertainty and stress of being a long-distance landlord had become exhausting.

At the same time, the property was beginning to show its age. Although some updates had been completed over the years, the home still needed significant improvements to the kitchen, bathrooms, and backyard. The seller did not want to spend tens of thousands of dollars on repairs or deal with the hassle of listing a tenant-occupied home on the market.

She wanted a simple sale, certainty that the transaction would close, and a buyer who could purchase the property exactly as it sat.

The Challenges

Selling a tenant-occupied property can be difficult for several reasons.

The seller was concerned about:

• Coordinating showings with a tenant living in the property.
• Spending money on repairs and updates before listing.
• The uncertainty of whether a traditional buyer would be comfortable purchasing a tenant-occupied home.
• Potential delays caused by inspections, appraisals, and lender requirements.
• Managing the sale from outside the Sacramento area.

Many buyers are hesitant to purchase occupied rental properties, especially when the home needs remodeling. This can reduce the pool of buyers and often extends the amount of time the property sits on the market.

Why the Seller Chose R&H Distressed Properties

The seller contacted R&H Distressed Properties because of our reputation for buying rental properties, including homes that are currently occupied by tenants.

She appreciated that we:

• Buy houses as-is.
• Purchase properties with tenants in place.
• Do not require repairs or updates.
• Offer flexible closing timelines.
• Provide a straightforward and transparent process.
• Eliminate the uncertainty that often comes with traditional sales.

Most importantly, she wanted the peace of mind that came from working directly with a local buyer who had experience solving situations like hers.

Our Solution

After speaking with the seller and learning about her goals, we made an offer that allowed her to sell the property without making any repairs or dealing with the challenges of a traditional listing.

We purchased the property with the tenant still living in the home.

Because the tenant made the process easy to work through and needed time to secure another place to live, we worked together to create a solution that benefited everyone involved. We even provided the tenant with additional funds to help with her transition.

The tenant remained in the property for 30 days after closing, giving her time to move into her new home comfortably.

Timeline of the Sale

Week 1: Initial call and property evaluation.

Week 2: Agreement reached and escrow opened.

Week 3: Closed on the property.

30 Days After Closing: Tenant successfully moved into another property.

From the first phone call to closing, the entire transaction took approximately three weeks.

What Happened After Closing

Once the tenant moved out, we began a complete renovation of the property.

The home received approximately $75,000 in improvements, including:

• Fully remodeled kitchen
• Updated bathrooms
• Interior improvements and finishes
• Exterior updates
• Complete backyard landscaping

Our goal was to transform the property into a beautiful home that would serve another Sacramento family for years to come.

After the renovation was completed, the property was sold to a local family.

The Results

For the Seller

• Sold without making repairs.
• Avoided the stress of listing a tenant-occupied property.
• Sold despite living outside the Sacramento area.
• Closed in just three weeks.
• Received certainty and a straightforward process.

For the Tenant

• Had time to secure another place to live.
• Received additional financial assistance during the transition.
• Avoided a rushed move.

For the Neighborhood

• An outdated rental property was fully renovated.
• Approximately $75,000 was invested back into the home.
• A local family purchased the property and made it their home.

Key Takeaways for Sacramento Landlords

If you own a rental property in Sacramento and are tired of being a landlord, you still have options, even if:

• The property needs repairs.
• The tenant is still living in the home.
• You live out of the area.
• The house is outdated.
• You want to avoid the uncertainty of listing with an agent.

At R&H Distressed Properties, we regularly purchase tenant-occupied properties and work with sellers to create solutions that fit their unique situations.

Frequently Asked Questions

Can I sell my Sacramento rental property with a tenant still living there?

Yes. We regularly purchase tenant-occupied properties and can often work with both the seller and tenant to make the process smooth for everyone involved.

Do I need to make repairs before selling?

No. We buy houses exactly as they are, including homes that need updates or significant remodeling.

How quickly can you close?

Every situation is different, but this particular property closed in approximately three weeks from the initial call.

What if I live outside of Sacramento?

Many of the homeowners we work with live out of the area. We can handle the process remotely and coordinate everything through escrow.

Do you buy outdated rental properties?

Absolutely. We specialize in purchasing homes that need repairs, updates, or complete renovations.

Need to Sell a Tenant-Occupied Rental Property in Sacramento?

Whether you’re dealing with problem tenants, an outdated rental, or you’re simply ready to move on from being a landlord, R&H Distressed Properties can help. We buy houses in Sacramento as-is, with or without tenants, and make the process simple, transparent, and stress-free.