Marketing idea to sell all my rentals...

[Eric Vermeire]

I have 10 single-family residences in Washington that I was toying with the idea of selling them all. Why you ask? well I would like to use the cash for other things. So, I was hoping for some advice on my marketing ideas? They are below:.

1) Make $16,000 in the first month
- The way this works is that since rents are paid upfront, the new owner is entitled to the rents on day 1 of closing and then all the rents at the end of the month. Since gross rents for all ten properties is $8,000 per month, you get the idea.

2) Free home!
- Since I am offering a substantial discount on all 10 homes, which amounts to the value of 1 of the homes. Basically a free house.

3) 8.3% ROI
The 10% is calculated because the new owner would get 13 "months", remember the 1st day of rents for option #1, which works out to be $8,000 * 13 = $104,000 in gross rents - $16,500 property taxes = $87,500 in first year income. Divide that by my asking price of $1.05 million and viola 8.3% ROI

Ideas/Comments/Suggestions???

[Richard Warren]

Originally posted by Eric Vermeire:

This is below the 1% rule.

I see you’re fairly new here. The so-called “1 % rule†is made up by realtors and sellers who want people to believe that getting 1% of the purchase price in rent is a good deal. The “1% rule†is pretty much a guarantee that you’ll lose money. Around here people are well aware of the 50% rule and 2% rule. You can search the rental property forums using those terms and you’ll get plenty of posts based on reality, not the 1% fantasy.

I’ve been dealing with rental properties for 18+ years and would pass on the 1% “deals†every time.

:cool: