Advice on selling a free and clear property

[Ashley Pimsner]

Hello BP nation, I need some advice about selling a free and clear condo that is currently listed for 140k which is about 20k below fmr because of some deferred maintenance. 

I had it rented for 3 years for 1200 mth, and believe I could now get $1400 mth, but I would like to sell and free up capital in order to buy additional multi units or possibly an apartment building.

A have tried the traditional approach of listing on MLS but feel I need to be more creative, and would like some ideas from the community.

I would not be opposed to seller financing as long as buyer took me out in 2-3 years.

Any ideas?

[Daren H.]

Obviously I don't know the specific conditions of your market but generally the MLS offers the widest exposure combined with Zillow, Trulia, Realtor, etc. and similar large sites (there are always exceptions). If buyers are not jumping on it, I wonder if your fair market value is accurate or you are not discounting enough for repairs. Lets just assume the repairs to make the property market ready is $20K, and the after repair value is $160K. Most owner occupants with options are not interested in buying at $140K, taking on risk of a ~$20K rehab, managing a rehab, just to end up around $160K after repair value. Investors would be even less interested. Maybe your asking price is still to high. Why not advertise on the MLS but include that you are offering seller financing? You are offering terms so push for your price. Take a healthy down payment, healthy interest rate, let the new owner be responsible for fixing up the place. If they fail to take you out in the specified time, take the property back and do it again (you could even luck up and the property will be in better condition than before, but don't count on it).

I know a guy who does this over and over. The only thing I don't like about his approach is that he is happy to see the new owner on seller financing fail because he gets the house back and gets to do it all over again (sell again, collect new down payment, interest, etc). Seems wrong to me how he gloats about it.