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Updated over 8 years ago on . Most recent reply
Sounds stupid to me!
I recently went through some classifieds, to find a tri-plex for sale, at 75% retail, with an incredible cashflow(45%in this case!) Fully occupied.
My question? Why in the heck would anybody sell a property like this?!
Or for that matter:
*When you go through classifieds, or you look for a decent deal, and find a couple, why is it a good deal if they are selling it, and especially if/when somebody selling it is also an investor? Which gives rise to the next question:
*How can you, as an investor sell a rental property and expect anything remotely close to full retail?
*And why would you sell a tenant occupied property, let alone a fully occupied triplex?
It makes absolutely no sense to me.
Most Popular Reply
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Here's a common answer for this.
Property cash flow fantastic, but not enough to cover a big capital expense that was out of pocket. There's a lot of equity in the property, so the Investor access his equity to recover his capital expenditure by selling the property...then takes the profit, and buys a different property that cash flows.