I need advice about what I should do with my first property

I need advice about what I should do with my first property

Member since 2022 · 3 posts · 0 votes
I have a small 3bd house in southern Illinois and I am not sure how what to do with it now that I have to move. I'm going to be moving about 12 hours away, so it won't be that easy for me to come back to the property on a regular basis.

It is functional, but needs a lot of work in terms of carpentry, drywall, doors, windows, and siding. I am having trouble finding a local realtor willing to list the property and it needs too much work to be listed as a rental at the moment. I'm not sure if I should just try to list it myself and sell it as is and take whatever I can get or make the repairs to get the house potentially sold or rented out for a better price. Most of the houses on my street are all rental properties, so there is that as well. A realtor told me to ask one of the rental companies to buy it, but I'm not sure if they would even be interested given due to the amount of work needed or if they would give me a fair price. I've been thinking about also selling it as a rent to own as well, but I'm not sure how feasible that is either.

I'm just looking for some general advice that might help me figure out the best way to handle this. I'm also looking for any advice regarding how to keep it secure and monitor it while I get the property sold or rented out.
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Real Estate Agent · GA · Member since 2021 · 5 posts · 3 votes
4y

I would say :

1. if you want to keep the property, find a good general contractor that you trust , go over a project plan and keep in touch with him as the job is getting done , schedule FaceTime calls , and keep a tight tab on how the job is going . 


2. If you don’t want to hold onto it , sell it to another investor (try to at least break even) , and use that money to invest in the area that you are moving to. 

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  • Lender · Annapolis, MD · Member since 2022 · 154 posts · 70 votes
    4y

    @Nicky Jones Do you have an idea how much in repairs it needs? Is it free and clear? Can you get a loan on the property, fix it up to meet the minimum standards of what the other rentals are? After it is repaired, can you rent or sell and make money? Good Luck!

  • Real Estate Agent · GA · Member since 2021 · 5 posts · 3 votes
    4y

    I would say :

    1. if you want to keep the property, find a good general contractor that you trust , go over a project plan and keep in touch with him as the job is getting done , schedule FaceTime calls , and keep a tight tab on how the job is going . 


    2. If you don’t want to hold onto it , sell it to another investor (try to at least break even) , and use that money to invest in the area that you are moving to. 

  • Member since 2022 · 3 posts · 0 votes
    4y
    Quote from @Mike Davis:

    @Nicky Jones Do you have an idea how much in repairs it needs? Is it free and clear? Can you get a loan on the property, fix it up to meet the minimum standards of what the other rentals are? After it is repaired, can you rent or sell and make money? Good Luck!


    I own the house free and clear. The repairs are another issue though. I don't have a single general contractor. It probably needs about $20k of work in total, but I will have to piece it together. I have had a really hard time finding and working with contractors. I'm not sure how to get a loan for it though. On Zillow, it says that it is worth about $47K and it could sell for more if I put more effort into. I paid $10K for it a two years ago.
  • Investor · Member since 2022 · 6 posts · 0 votes
    4y

    Hi Nicky, rent2own is great strategy. Start by marketing the property online, such CL or Facebook Marketplace and see what type of traffic you receive. There are multiple strategy you could deploy. Perhaps a JV project with another local investor you trust.

  • Member since 2022 · 3 posts · 0 votes
    4y
    Quote from @Will Headen:

    Hi Nicky, rent2own is great strategy. Start by marketing the property online, such CL or Facebook Marketplace and see what type of traffic you receive. There are multiple strategy you could deploy. Perhaps a JV project with another local investor you trust.


    Yes, it sounds like a good ideas as well. I just have to get the house repaired and draft the agreement. Have you sold a house rent2own before? If so, what was your experience?
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    You lived in it, so it's clearly livable and could probably be rented as is or with minimum work. It's also sellable, as long as you price it correctly.

    Zillow is a liar and not to be trusted. You need to talk to a live agent that understands the market. You would be better off selling it and I'm sure you could unload it for $20,000 or $30,000 and walk away with a profit.

    The DIY Landlord Book4.7247 Reviews
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    @Nicky Jones find a Realtor that will list it if possible, if not reach out to a wholesaler

  • George SkidisPro Member
    Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
    4y

    If you wish to sell PM me with your phone number. I know a couple of investors down in the Marion, IL area.

  • Real Estate Agent · Boise, ID · Member since 2020 · 31 posts · 43 votes
    4y

    Have you tried looking for a wholesaler to purchase your property? They will often buy homes sight unseen without inspections and can close quickly. The difficulty of selling it as a FSBO or with an agent is the inspection and the potential lender repairs that you many not be able to avoid. I'm sure if you call a wholesaler you might just be able to make it happen. Good luck!

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