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Updated 7 months ago on . Most recent reply

User Stats

39
Posts
10
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Darrell Kirby
  • Ypsilanti, MI
10
Votes |
39
Posts

Selling a Duplex with 2 Buyers interested

Darrell Kirby
  • Ypsilanti, MI
Posted
I am selling a Duplex located in Ecorse Michigan. I received 2 offers. They both want all tenants out and I am currently going through an eviction with the remaining tenant who were both not paying.

I will have to pay capital gains taxes in either case as I've owned less than a year. I originally paid 143K for the place.

1. The buyer wants to pay or assume my mortgage, pay 165K and the place is listed as 161K appraised. They probably will pay my mortgage as it does not look to be assumable. They will put 20K down.

2. The second buyer will pay 150K cash after appraisal.

I assuming number 2 is the better deal. I just wanted input or opinions.

Thanks in advance!

Most Popular Reply

User Stats

39
Posts
10
Votes
Darrell Kirby
  • Ypsilanti, MI
10
Votes |
39
Posts
Darrell Kirby
  • Ypsilanti, MI
Replied
Quote from @Max Ferguson:

After taxes and fees, and depending on if you plan to depreciate it at all, you may not have to pay anything or much in taxes. 7-22k spread minus closing costs (also the eviction costs are a write off as well) isn't going to be too much in taxes depending on what you decide to do. 

The first option is a much better deal if they can secure financing, but the owner financing portion is too much headache IMO, but could work something out with a good contract. 

Good luck and let us know what you figure out!


Thank you. I did not really want to go with the owner financing route if I did not have to. 

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