Selling a High Cash Flowing Triplex?

Question

Hey Everyone!So I have a Triplex that I own 12 hours away from where I live in my hometown. It's been great! The tenants are great, it's in a great location and it cash flows $4487 a month. However, it's the only long distance property that I own and I want to focus on properties and STRs where I'm at now. It's about an hour outside of Philadelphia in Chester County, PA. Between Kennett Square and West Chester. I would like to sell it off market, so that I don't have a ton of tire kickers going through the property and bothering the tenants. What's your advice on finding off market buyers?

Garrett Christensen · Answer

I would suggest still using an agent, they will put it on the MLS where the most severe buyers search. You can also ask them to screen all potential buyers to ensure they are serious and already preapproved in Utah, where I am. Many FSBO listings are posted on local classified websites and from what I've seen they can about 1/10 of the views that the MLS gets.

To answer your question directly, you could post it on local investor Facebook pages, here on BP, and your local classifieds, and then just do the screening yourself.

Jay Knightley · Answer

Hi Michael,

Great advice here already, one course of action I would suggest that I haven't yet seen mentioned would be to reach out to as many local property managers who serve Chester County as you can. PM's will have access and lines of communication already open with investors who have a proven track record, that may also be looking to add to their portfolio.

Jason Martinez · Answer

I'd be interested... I sent you a DM

Bill B. · Answer

You’ll get less money than allowing potential buyers to walk through, but probably still more than selling it off market if you use the strategy people used when the market was on fire.

List it with several current photos and simply say no inspection/walk throughs until your offer is accepted, please do not disturb tenants.

Now you might also be more likely to either have your sale fall through or have the buyer re-negotiate if you either forget to mention problems they discover or don’t provide enough photos/info ahead of time, that’s the big downside.

Be sure to provide detailed p&l’s, rent rolls, estoppels, anything to provide confidence to the buyer. I don’t know if you’d get anywhere requiring a few thousand in hard earnest money to reduce re-traders and who,sealers, that’s up to you and your realtor to decide.

Zachariah Tuck · Answer

Did he list the property on BP or am I missing something?  An answer to this leads to host of other questions that I may or may not be able to answer on my own.

Gregory H. · Answer

Hi Michael, it appears you bought it in 2021 for $535K then listed it less than a year later for $590K with an agent then pulled the listing two months later. In the listing, the three units together rent for approximately $4,400 a month. That is not the cashflow, you need to throw in a host of expenses in there. What happened with the listing in 2022 and what are you hoping to get for it?

Rob Lawrence · Answer

I have buyers for that and could make that happen.  I'll send you a note.

David Nicholson · Answer

1) Talk with a local wholesaler or investor (like myself) so you can figure out what your ideal scenario and goals would be. Might be able to simply work with them to sell directly or someone they know.

2) Work with them to send it to their buyers list to find off-market buyers

3) You could always work with a realtor but only have limited showings

Selling a High Cash Flowing Triplex?

Most Popular Reply