Opinions on rental properties.

[KL Furnung]

Hello all,

Was hoping I could get some suggestions or hear about any similar experiences concerning the following.

I have a number of single family homes, all in a small community. All are rented and normally rented within a few days if it become vacant. In the near future I see myself wanting to sell most, if not all of them. I'm guessing that I'd benefit best by selling them individually, but would prefer to sell them all at once. Currently, the rent from them is 14,000 -$15,000 a month.

My question is, how much less would expect to receive if selling them as a group compared to individually. My current estimate is on average, the homes would sell for $100,000. Some more, some less.

Welcome all opinions!

Thank you

[Greg Scott]

You are limiting your pool of buyers to investors if you sell as a portfolio.  I would guess the discount would be in the 10-15% range.

Other considerations for you: 

• My ideal scenario is selling my rental to the tenant.  That becomes a win-win because you can offer it at a big discount because you have no rehab and no realtor fees, and they can buy a house they know and love.
• You may want to consider the tax implications.   I sold off my SF rentals over a number of years which allowed me to spread the capital gains and build depreciation offsets from other investments.