selling directly to investors with occupied rental

[Lutz Braun]

We own a rental (single family home) in Clovis CA and have never had a problem having it occupied. The current tenant pays above market (approx 15% more) and has communicated they want to live in the house for several years. We need to sale in order to have the cash to put down on a new primary in southern california for our expanding family.

Is it harder to sell a rental with tenant? Would it be smarter to market the property directly to investors vs the general public via a local real estate broker? 

What are your thoughts/experiences?

Thanks.

[Ryan B.]

An owner occupant is going to be more likely to pay a premium for an SFR than a would be investor. So depending on the current lease agreement it likely makes more sense to give the tenant proper notice to vacate, potentially stage it, and sell.

If you're cash flow positive on this property then perhaps you should look for other avenues of achieving the purchase of your new primary? This property is an appreciating asset and your primary is arguably a liability. If you were to calculate the return on this investment over 10 years and compare that to the potential return achieved by selling it to finance your primary, then I would imagine the opportunity cost would cause to you drink hard liquor straight up.

If you have equity built up then perhaps cash out refinance to get the down for the primary? Being sure to keep positive cash flow in the investment property.