Feeling Guilty About Selling

[Bob C.]

I bought a house in Denver 12 years ago and got lucky. The market has been strong, the rents high and the maintenance manageable.
Now I want  to sell it. I've offered it to the tenants for $20k below market. (because I wouldn't have to do any updates or pay a commission) However, the tenants can't afford to buy it. I'll sell the house with the lease in place, but they will eventually get booted. I'm feeling bad for them.
Maybe I can find an investor in Denver looking for a pre - leased home with a 4 % cap rate.

What's your opinion on this?

[Linda Weygant]

Can you do an owner carry loan for them?  What about lease to own?

[Thomas S.]

No one is likely to invest in a 4 cap. Tenants move all the time and will easily resettle where ever they choose.

It is never wise to have feelings when money is involved. Terminate the lease, if they are M2M, or wait till it ends and get rid of them. You will have much better luck selling if there are no tenants in the place and you may get a higher price from a home buyer than a investor. Move on with your life

[Matt M.]

I'll take a look at it. 

Tenants getting booted is just part of the game. You've got to do what's best for you and your family.  

[Max T.]

Or wait for them to move on their own and then sell.

[Steve B.]

You can easily find an investor who will tell you whatever you want to hear and then promptly boot your tenants. unless Denver allows some ridiculous long term lease that will bind them, but I doubt it will survive a sale

[Bob C.]

All great advice. I should remember that it's my house and I can do what I want.
So, I'm going to sell it. I'm even willing to sell it below market a bit as it still has tenants (on a month to month lease) I had a full inspection done last month and fixed everything. Had it re-inspected and got an updated report. So, I'm ready to man up and sell. 

[Bill S.]

@Bob C. are you willing to boot the tenants before closing for a buyer? Selling occupied units is always a challenge. Unless tenants have nice stuff and keep the place clean it's hard to get top dollar for occupied units. I buy properties with tenants in place and I usually get a discount for doing so. If you are interested, send me a private message.