Finishing a flip - whether or not to rent duplex before listing

[Geoff Schroeder]

I am nearing completion of a property I purchased with intentions to keep in my rental portfolio but have decided to "ring the register" to build a little cash while I see what the market does. The property is a top/bottom duplex that would be suitable for a house hacker or an investor. I plan to list it at a competitive price to move it quickly. It is a turnkey property that will show nicely and I'm considering listing at $299k. Market rent for both units rented is $2300 to $2500 total/month. Yes that isn't a 1% deal but the cap rate isn't unusual for the area; especially for turnkey. Also, each unit is separately metered for water and electric (somewhat rare in downtown Wilmington) and has W/D hookups. 

I self manage all my other properties so I am perfectly comfortable with finding a good quality tenant prior to selling. I'm debating whether to list it vacant or possibly just lease the top floor so the buyer knows that they'd have some income coming in right off the bat. That may appeal to a house hacker. Or I could rent both units to try to attract more of a turnkey investor. 

What do you think BP community? Any feedback is greatly appreciated!

[Sergey A. Petrov]

List it vacant and include rental rates in your listing. You’d be limiting your buyer pool otherwise. Right now it is “brand new”, fully remodeled, hasn’t been lived in, a buyer can choose to rent both or just one (what if you rent the top but the buyer prefers to occupy the top and lease the bottom). If you rent one or both, the buyer is inheriting a brand new tenant with no track record. If you list, get no bites, and suspect it might sit on the market, reassess then.