Sell Strategy on Multiple Properties

[Shane Klasnimi]

Hi everyone,

I currently am in the process of selling a few of my rental properties in LA located in a PUD. Originally I had planned to remodel and sell them off to capitalize on the market, but with rising rehab costs the margins have gotten so thin I've had to consider selling as is. I'm having issues with running into a ceiling on pricing, because the properties are located in the less desirable parts of the immediate area and once I hit a certain price the buyers either get priced out or I begin competing with better areas/better houses/etc. One of the comps in the area sold recently, unimproved, for above what my first remodel closed at (still made a decent return, but now I'm a bit lost at what my strategy moving forward should be). If the houses sell unimproved for close to that comp there is no profit margin to be made rehabbing the property. Currently I have 2 more houses unimproved and one fully remodeled and ready for market. I have a couple questions... What should my strategy be? I am considering listing the unimproved houses first, riding the hot market and foregoing improvements on them if there's minimal to no profit margin for the rehab, or list the remodeled one first? (The justification being that securing the equity I've already put in/brings up the appraisal value on the adjacent houses). Or is there anything else I should factor into the decision? Help with this much appreciated!

SK