You bought a Philly rowhome as a rental 10 years ago. It looked like easy passive income. It wasn't.
Now the tenants are in year 4 of a lease you renegotiated twice. L&I sent two violations last year. The HVAC died in February. You're netting $600/month after all the expenses, and it's not worth the headaches anymore.
You're tired. You want out. Here are your three exit paths, honestly compared.
Exit 1: List it with a real estate agent
The traditional path. You hire an agent, they list it, they run showings, they negotiate, you pay about 6% commission.
What it takes:
- Get the tenants to cooperate with showings (hard) or wait until the lease ends (slow)
- Cosmetic repairs to maximize listing price ($5k-$15k usually)
- 3-5 months from listing to close
What you net: Highest dollar amount of the three options, usually. On a $180,000 Philly rowhome rental, you might clear $155,000-$165,000 after commissions and closing costs.
The catch: Timeline and tenant cooperation. If your tenants refuse showings, you need to wait out the lease or pay them cash-for-keys. If the house needs visible repairs before listing, you'll pay for those up front.
When it fits: Your tenants cooperate or are leaving soon, the house is in decent cosmetic shape, and you can wait 4-6 months.
Exit 2: Sell to a cash buyer (us or another wholesaler)
We buy tenanted rentals as-is. No showings, no evictions, no repairs.
What it takes:
- Send us the address and the current lease
- We walk through or review photos
- Written offer in 24 hours
- 30-60 day close
What you net: Less than a listing. Usually 25-55% of ARV depending on condition and the tenant situation. On that same $180,000 rowhome rental, a cash offer might be $75,000-$110,000.
The catch: Lower dollar amount. Cash buyers price in the work, the tenant transition, and the risk.
When it fits: Tenants aren't cooperative, house needs real work, you've got L&I violations, you have multiple rentals you want to exit at once, or you're just done and want it handled.
Exit 3: Sell to another investor directly
Skip the agent, skip the wholesaler, sell directly to another investor who wants rentals. You find buyers through BiggerPockets, Philly REIA, landlord Facebook groups, or word of mouth.
What it takes:
- Marketing the property yourself (or through networking)
- Negotiating terms directly
- Usually 4-12 weeks to close
What you net: Somewhere between a wholesale sale and a retail listing. Direct-to-investor deals save the agent commission but other investors often bid close to what wholesalers pay.
The catch: Takes effort and real estate knowledge. Not great if you don't have investor connections.
When it fits: You're an experienced landlord with connections in the Philly investor community.
The numbers, side by side
Using that $180,000 ARV rowhome rental as an example:
| Exit Path | Gross | Fees/Costs | Net to You | Timeline | |---|---|---|---|---| | Agent listing (cosmetic work done) | $170,000 | −$12,500 (commissions/closing) − $10,000 (prep) | ~$147,500 | 4-6 months | | Cash sale (Covenant) | $90,000 | $0 (we pay closing) | ~$90,000 | 30-60 days | | Direct to investor | $115,000 | $0-$2,000 (your legal/title) | ~$113,000 | 2-3 months |
The agent path nets more dollars. The cash path nets faster. Which matters more depends on you.
The math of holding longer
A lot of tired landlords ask us: "Should I just hold it another year or two and see if things get better?"
Sometimes yes. Sometimes no. Here's how to think about it:
Annual cost of holding a Philly rental (rough):
- Property taxes: $2,500-$4,000
- Insurance: $1,200-$2,000
- Maintenance & repairs: $2,000-$5,000
- L&I/license fees: $200
- Lost opportunity cost on equity: depends on your return alternatives
Annual gross rent (typical Philly 3BR): $15,000-$22,000
Net before vacancy/major repairs: $7,000-$12,000/year
If the last year's net was negative (major repair, eviction, long vacancy), selling now often beats hoping next year is better.
What tired landlords actually tell us
When we talk to tired landlords in Philly, here's what we hear most:
- "I'm just done dealing with tenants."
- "I spent $8,000 on this repair and the tenants still complain."
- "I can't keep coming here on weekends to deal with issues."
- "My wife wants me out of the landlord business."
- "Another L&I violation showed up and I don't have time for it."
If that's you, one of the three exit paths above will work. The right one depends on whether you value time or dollars more.
Our honest recommendation
For most tired landlords with 1-3 Philly rentals in mid-condition:
- If the rental is in good shape and tenants will cooperate: List with an agent. The extra $40,000-$60,000 is worth the 4-month wait.
- If the rental needs work, has L&I issues, or tenants won't cooperate: Sell to a cash buyer. The speed and simplicity earn their discount.
- If you have 3+ rentals to exit at once: Consider selling as a portfolio to a single cash buyer. We've bought 2-3 rentals from the same landlord on the same day.
When to call us
Call us if you're done and you want it handled — tenants, repairs, violations, all of it. We'll look at the portfolio, walk through, and give you a real number.
If a traditional listing would net you more and you have the time, we'll tell you that instead.
Watson Saintsulne is the Director of Sales at The Covenant Real Estate Investment Group LLC. Covenant has closed 21+ tired-landlord sales in Philly since 2021.