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Updated over 5 years ago, 07/07/2019
First Wholesale Deal (as Seller) but with a Twist! Have Questions
I did a mortgage assumption agreement with an older family member and have been doing the rehab this year. I'm doing the actual work and not contracting out, in which I learned a lot and now have enough tools for almost any rehab. But I dont plan on actually doing the rehab work myself after this on new properties. It takes a lot of your time that you can be spending on making deals.
The property has several units (Main house, 1 bedroom garage apartment, and a studio). I've completed the remodel of garage apartment to a really nice quality, maybe slight too nice for the neighborhood. So we have it on Airbnb and its been getting requests within hours of listing. The property is in another town from my main home base (3hrs away) and I'm not eager to tackle the main house rehab right now (taking too long, heat, and I'm probably slight over on the garage apartment budget so I want to trim main house budget a bit to keep the whole budget in line).
So I decided I would list it as a wholesale deal online and entertain offers that would make me want to part with it earlier and let someone else do the work and reap the rewards. I would miss out on the residual income but I rather focus my attention on other real estate interests, other businesses I'm involved with, and not be away from home much longer.
The property is already bringing in rent from the days we leave the city. But with the neighborhood NOT being as middle to high end, we're worried we'll get some complaints from guests not liking the environment. They love the interior unit and have no complaints. Some guests are not from the city so they don't know areas. Since I don't own it out right at this time and there is no pressure (or assignment contract) in place, there is no rush to sell.
Here are some questions:
- I've already been offered rent to own offers with a 12% downpayment and high monthly payments. I know theres a lot of ways to put these offers together but what do you gives prefer with wholesale deals and what would you avoid?
- should I be candid with my situation with buyers, mention I'm in no rush, pain points, etc?
- Also if I don't sell immediately, I was planning to continue my updates step by step, including some slight landscape repairs (not upgrades... it just ugly, want to bring it up to par), finish the apartment backdoor deck/section(its just high weeds and dirt). I know there is a difference between doing updates (putting money into things) that would increase the market value and those that will not. But remember this is renting on airbnb, so these aspects would allow me to increase nightly rate. But as each month goes by, and I do more updates and repairs, thats less a new owner would have to rehab (less cost), should I increase the price of the property by that much?