Selling Property in Rundown Area - How's the market?

[Diane Tycangco]

Hello Everyone!  I am an agent selling my own 7 unit property in Fresno for $750k.  The cash flow is good but people have complained either it was too old, or bad area.  The area itself is not crime-ridden but my neighbors' properties are rundown.   Admittedly, if someone put down 25%, they might not cashflow but, other properties are priced similarly or much higher.  Some agents told me it's because rates are high and people are not willing to sell their properties with the lower interest rate or people are waiting for rates to come down or waiting for the outcome of the election or economy is bad.  What do you guys think?

Any tips on what I can do to sell this property?

Thanks!

[Travis Beck]

Diane, can you share the address? I’m curious where your rents are compared to market rents? I have noticed lots of owners have not kept up with current market rents over the years but when they go to sell, they still want pricing that comparable units have sold for but with much higher rents. You might need to get your rents to a point where the property at least cash flows some with 25% down. 

[Diane Tycangco]

Hi Travis, my units are at market rents except for 1 2b1b and 1 studio where tenants have been there for years. If they were at market rent, it would be an additional $900/mo. Which would probably cover the mortgage at 25% down. But so many properties in Fresno are priced similarly and don't even get the rents I get.