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Difficulty selling rental properties at loan amount
I own 3 rental properties in Memphis and have been renting them out since I got them. However, last year I tried to sell them at 25% below market value and still only got offers for less than the loan amount. I ended up having to put tenants in it again after not receiving any income for a year in addition to putting in another 20K to fix these properties up to make them turn key. I can't refi because I am self employed and I can't do a short sale or approach the banks as to not to jeopardize my excellent credit rating.
I would like to sell these properties as a package. They generate at least 1K/month in net profits (after PITI and management fees) and don't need any repairs.
Is there any other strategy I could use to offload these properties at a minimum of breaking even or just a tiny bit of a profit?
I am currently looking for MFH's in CA and would also consider an exchange or other unique options. Please advise!
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Originally posted by @Greg Junge:I just read this crazy long thread from beginning to end and WOW! I had a few turnkey providers on my radar in Memphis for recent out of state purchases but I have since crossed them off my list. I'm sure there are deals in Memphis, even if you buy over 100k, which I would, to avoid many issues. But it seems that Memphis is a highly rental heavy demographic and selling retail at the end isn't ideal, compared to other markets. I'm sure it can happen, but just not ideal.
I'm looking at a few other markets that have both cash flow and appreciation benefits, along with a solid exit strategy for down the road.Great thread, and really impressed with
@Jay Hinrichs comments, viewpoint, and outlook. I listened to your podcast in the past and recently re-listened to it. Great job diving in! I'd love to connect...
Best of luck to all!
Greg
I gave you a vote just for reading all 12 pages, lol.
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Originally posted by @Greg Junge:
I just read this crazy long thread from beginning to end and WOW! I had a few turnkey providers on my radar in Memphis for recent out of state purchases but I have since crossed them off my list. I'm sure there are deals in Memphis, even if you buy over 100k, which I would, to avoid many issues. But it seems that Memphis is a highly rental heavy demographic and selling retail at the end isn't ideal, compared to other markets. I'm sure it can happen, but just not ideal.
I'm looking at a few other markets that have both cash flow and appreciation benefits, along with a solid exit strategy for down the road.Great thread, and really impressed with
@Jay Hinrichs comments, viewpoint, and outlook. I listened to your podcast in the past and recently re-listened to it. Great job diving in! I'd love to connect...
Best of luck to all!
Greg
What other markets are you looking at?
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@James Wise Ha thanks! I can justify it as my due diligence for out of state investing, and I was in between appointments and it was certainly entertaining.
@Gabe Barlow I'm currently evaluating Jacksonville, Orlando, and Tampa for now. I have Houston and Dallas as possibilities but I think the property taxes are too high in most cases.
Any input on those three florida markets would be appreciated. I have contacted a few turnkey providers there but I'm careful to invest with turnkey, but will pull the trigger if the numbers work and the long term exit strategy is there for both a retail sell exit and/or investor sell exit.