R.T. Had been a landlord in Dallas for seven years. He bought a 3-bedroom brick ranch in the Pleasant Grove area of southeast Dallas County in 2019, put $22,000 into it, and rented it to a tenant who paid on time for the first three years.
Then the tenant stopped paying.
By the time R.T. Called Home Pros, he was six months into collecting excuses instead of rent. The tenant was three months behind on payments, had sublet a room to someone R.T. Had never screened, and was not responding to texts or calls consistently. The property had some deferred maintenance — nothing structural, but the kind of small issues that pile up when a landlord stops wanting to visit.
R.T. Had looked into eviction. A Dallas County Justice Court eviction takes 3 to 4 weeks under ideal conditions. But R.T. Did not want to manage a legal proceeding. He did not want to show up at the courthouse. He did not want to deal with a constable posting notices. He was done with the property, done with the tenants, and he wanted out.
Nine days later, he was.
The Deal at a Glance
| Detail | Value |
|---|---|
| Property type | 3 bed / 2 bath SFR, 1,340 sq ft |
| Location | Pleasant Grove, Dallas TX (Dallas County) |
| Year built | 1988 |
| Tenant situation | Month-to-month, 3 months behind on rent |
| Condition | Above average structure, dated finishes, minor deferred maintenance |
| Acquisition price | $198,000 |
| ARV (renovated) | $255,000 |
| Timeline | 9 days from first contact to close |
Day 1: The Call
R.T. Found Home Pros through a search for cash buyers in Dallas who purchase occupied properties. His first question was whether he had to evict the tenant before selling.
The answer: no.
In Texas, a property sale does not terminate an existing lease. The new owner inherits the lease terms and the tenant relationship. For month-to-month tenancies like R.T.'s, the new owner can issue a 30-day notice to vacate after taking title. But the critical point for R.T. Was that he did not need to resolve the tenant situation before selling. That was the new owner's responsibility.
According to the Texas Property Code, Section 92, a landlord's obligations and the tenant's rights transfer with the property at closing. The sale itself is a clean legal transaction regardless of tenant status.
Day 2: Walkthrough and Offer
Home Pros scheduled a walkthrough for the next day. The tenant was home during the visit, which is common with occupied properties. Texas law requires reasonable notice to tenants before showing a property. R.T. Had called the tenant that morning.
The property was in better shape than expected. The structure was solid — good roof (replaced 2021), functioning HVAC, no foundation issues. The cosmetic condition was dated: original 1988 tile in the bathrooms, worn carpet in two bedrooms, older kitchen cabinets. The kind of property that needs $18,000 to $25,000 to bring to market-ready condition.
Home Pros presented a cash offer of $198,000, reflecting the current condition, the tenant situation, and the renovation scope needed to bring the property to its $255,000 ARV.
R.T.'s net proceeds after mortgage payoff, property taxes, and closing costs would be approximately $48,000.
Day 3-4: Offer Accepted, Title Ordered
R.T. Accepted the offer on day 3. Home Pros ordered the title search through a Dallas County title company experienced with investor transactions.
The title search revealed a clean chain of title with no liens or judgments beyond R.T.'s mortgage. Property taxes were current. No HOA to clear.
Day 5: Cash-for-Keys Negotiation
Here is where the deal structure got interesting. Rather than inherit a nonpaying tenant and manage the eviction process post-closing, Home Pros negotiated a cash-for-keys agreement directly with the tenant.
Cash-for-keys is straightforward: the buyer offers the tenant a cash payment in exchange for voluntarily vacating the property by an agreed date. It is faster than eviction, avoids the court system entirely, and gives the tenant money to relocate.
Home Pros offered the tenant $1,500 and 10 days to vacate. The tenant accepted.
Cash-for-keys agreements are entirely legal in Texas. They are a negotiated contract between the tenant and the buyer (or seller). The Nolo legal resource library provides additional context on Texas tenant rights during property transitions.
The benefit for R.T.: he did not participate in the cash-for-keys negotiation. He did not knock on the door. He did not write a check. He did not appear in court. Home Pros handled the tenant transition as part of the acquisition.
Day 9: Close
The tenant vacated on day 8. Closing happened on day 9 at the title company.
R.T. Signed the deed, received his proceeds via wire transfer, and walked away from a property that had been a source of stress for over six months. Total time from first call to money in the bank: nine days.
What Made This Deal Work
Speed mattered more than top dollar. R.T. Could have listed the property for $215,000-$225,000 as-is on the MLS. But listing an occupied property with nonpaying tenants creates complications: limited showings, buyer objections to the tenant situation, financing issues (most lenders will not lend on occupied non-performing rentals), and a timeline of 60-90 days minimum. R.T. Was willing to accept a lower price for certainty, speed, and zero hassle.
Cash-for-keys was faster than eviction. A Dallas County eviction through Justice Court takes 3-4 weeks from filing to writ of possession. Add another 1-2 weeks for the constable to execute. And that timeline assumes the tenant does not appeal, which would add another 8-10 days. Total: 5-7 weeks at minimum. Cash-for-keys resolved the tenant situation in 3 days.
Texas is landlord-friendly, but landlords still hate the process. Texas has relatively streamlined eviction procedures compared to states like California or New York. According to Nolo's state-by-state eviction guide, Texas landlords can typically complete an eviction in 3-5 weeks for nonpayment. But even in a landlord-friendly state, the process is adversarial, time-consuming, and emotionally draining for owners who simply want out.
The Investor Perspective
For the investor who acquired this property, the numbers tell a clear story:
- Acquisition: $198,000
- Cash-for-keys: $1,500
- Estimated renovation: $22,000
- Estimated total investment: $221,500
- ARV: $255,000
- Estimated gross margin: $33,500
That margin supports either a flip (sell at ARV) or a BRRRR strategy (refinance at 75% of ARV = $191,250, which recovers most of the acquisition cost when combined with the renovation budget).
The Dallas Central Appraisal District shows Pleasant Grove properties appreciating at 4-6% annually over the past three years, which supports both exit strategies.
For more on how Dallas deals move through the pipeline, see our Dallas Real Estate Market Analysis for Investors. And for the seller perspective on the cash transaction process, our guide on What to Expect When Selling Your House to a Cash Buyer walks through the timeline step by step.
Frequently Asked Questions
Can you sell a rental property in Texas with tenants still living there?
Yes. Texas law allows property sales regardless of tenant occupancy. The new owner inherits the existing lease terms. For month-to-month tenancies, the new owner can issue a 30-day notice to vacate. For fixed-term leases, the new owner is bound by the lease until its expiration.
Do you have to evict tenants before selling a rental property in Dallas?
No. You can sell the property with tenants in place. The buyer takes over the landlord role and the existing lease. Many cash buyers specifically purchase occupied properties and handle the tenant transition after closing, which is exactly what happened in this case study.
What is a cash-for-keys agreement and does it work in Texas?
Cash-for-keys is a negotiated agreement where the buyer or seller pays the tenant a sum of money in exchange for the tenant voluntarily vacating the property by an agreed date. It is legal in Texas, faster than formal eviction, and avoids the court system entirely. Typical cash-for-keys amounts range from $1,000 to $3,000 depending on the market and situation.
How long does it take to sell a tenant-occupied property to a cash buyer?
Cash buyers experienced with occupied properties can typically close in 7 to 14 days. The timeline depends on title clearance and whether the buyer plans to resolve the tenant situation before or after closing. In this case study, closing happened in 9 days with the tenant vacating on day 8.
What happens to an existing lease when a rental property is sold in Texas?
The lease transfers to the new owner. Under Texas Property Code Section 92, the new owner assumes all landlord obligations and the tenant retains all rights under the existing agreement. For month-to-month leases, the new owner can terminate with 30 days written notice. Fixed-term leases continue until their expiration date.
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