2 Family Property owned by my Parents - Sell or Rehab & Rent?

[Jahan Habib]

I am not sure if this the correct forum to start this discussion, so please feel free to move it as needed.

I am looking for some advice regarding a 2 family property that my parents have owned for more than 15 years in a small, rural town in Pennsylvania. The property values are not that high in the area and the property is definitely in a state of disrepair, as no one had lived there for more than 15 years. My parents and I realize that we are not going be there/have use for the property so I have contacted real estate agents to sell the property.

Before we sign a listing agreement with an agent, I wanted to check in with the forum to see if there are any other creative ideas/thoughts, people might have?

Some relevant details:

Located in a small, rural community

2 family, side by side units

Low cost/high rent (2% rule applies) area

Potential risks include: limited tenant base, tenant issues

My inclination is to sell and move on, as it will take significant time/capital to get it back in good, rentable condition. On the one hand, the cash flow is certainly there. On the other hand, the location is out of my focus territory (Southern New England) and the payoff period will be long. My parents don’t really care and want to get rid of the hassle associated with the property.

What are your thoughts?

[Walter Roby jr]

What are the sold comps in the area, rents going for, zipcode, is there a mortgage, any liens, etc. Get a few contractor estimates to get it up to market comps and compare what you could sell it for fixed up vs as is. You can probably partner up with someone who will bring money for the repairs and 50/50 the added profit. Or you can get creative with friends/family and BRRRR it.

It really depends on how much work you want to put into it because it seems like your parents have already checked out.