Part 2: Why won't my investment property in Lincoln Park sell?

[Mike W.]

This is a follow up to my original post on July 23rd about my Lincoln Park investment property not selling: https://www.biggerpockets.com/...

To update the story now, I ended up pulling the listing off the market in August after 40+ showings and feeling totally depressed I did not get any offers. I put the condo back up for rent the following weekend with the intent to also give the condo a light renovation before the renters moved in (paint, rehab bathroom, paint kitchen cabs, add backsplash, new light/fan fixtures). I showed the condo to rent that weekend, and had people lined up to see it. One renter was so excited that they not only wanted to sign a lease immediately, but they also wanted to sign a right of first refusal to buy the place when I list it in 2021. I signed with them. This was before the rehab! What the heck happened? This property is a mystery. Anyway, I put about 10k into the rehab and have some very excited renters moving in who are clearly interested to buy it next year.

The questions is: what now? All comps for condos still come in way above what I had this place listed. The main complaints were too many stairs (it's third floor with no elevator) and closed off layout. I've worn out my welcome renting with the HOA who wants me to stop renting after this lease because we are over the HOA cap on units rented. Should I just put it in the hands of my tenants to make their best offer? Or should I set a reasonable list price for them to consider for the first right of refusal? It's tempting to raise the price because of the fresh new look in the condo. Not sure what to do next...

[John Warren]

@Mike W. I can tell you that this has been one of the strangest seasons for condo owners in trendy areas of the city that we have seen. I focus my business on listings, and my 2-4 unit stuff has been flying off the shelf. I have several very nice condo listings in both the city and near western suburbs that have been tough to sell even with appropriate price reductions, etc. You are feeling high inventory levels in the city condo market, and you are not alone. If you can hold for this year, you will most likely have a much better experience once this pandemic/rioting/looting season is over.