All Forum Posts by: Amir B.

The rent seems ok, lower rent does drive more traffic, but it's only sometimes better traffic.  I would note that there doesn't seem to be an online booking option which drives a lot of our traffic.  The house could use some updating, but it should still rent within two months, I would think.  Maybe a move-in special like 12th month free or half security deposit?

As someone who recently sold one of my investment properties, here are some questions/thoughts to consider:

1. What would you do with the money? You would need to do a 1031 exchange; otherwise be taxed on the gains. I just wanted to let you know that I don't have any plans. Correct. 

2. Are you going to have to disclose the necessary waterproofing if you don't do it? Buyers will want it done, and you will likely get a lower premium for brand-new waterproofing. I had a client where to re-roof would cost $30,000. I told him not to do it, we disclosed all leaks that were fixed, and buyers still took it as is. Buyers are expecting systems to be working, not brand new (unless a remodel/flip/new construction).

3. Do you anticipate any repairs in the immediate future?  For example, you have an AC unit functioning today but on the older side. Not at the moment, but I have done tons of plumbing repairs, which made me think of selling it. 

4. Since you paid it off, does it make sense to do a cash-out refi and put that money to work? For example, making improvements or buying other property. Not a fan of re-fi.

I'm not familiar with the area, but I would imagine waterproofing is a big deal. An experienced Realtor will be able to tell you. 

It is.

Hello BPers,

I'd like feedback on when an investor should decide to sell their investment.

I bought an SFH in Parma, OH, in June of 2017. I bought it for $86,500, including closing costs. I immediately found a renter for $1097, and she stayed until this past September. After about a year, I paid it off. After she left, I spent about $7,000 on repairs, paint, etc. After two months, I still haven't found a tenant (I did briefly, but the tenant backed out) and found out today that the basement needs waterproofing, which can cost between $4500-$5200. The house was built in 1955, and thinking if I should sell it.

My goal was to gross $5,000 per month between my three properties. I have a duplex in Euclid renting out for $2600 monthly. 

Many thanks for considering my request.

Amir

@James Wise

Hi @Amir B., what would you do with the money if you did sell it? What amount might you be able to sell it for? If you have no plans for the cash or something better to invest in with your sales profits, then I wouldn't sell. Unless you have some extenuating circumstances where you need to. Otherwise, I would repair, find the tenants, and keep looking for the next deal. And while you are looking for the next deal, consider putting the property up for sale with all the lovely photos, etc. If you get a good offer and have found the right deal to move the money to, then I would sell. Otherwise, what is the point?

Could you let me know why you paid it off?  You just paid the total price for the property.

Why are you concerned about the gross?  The gross doesn't matter.

Looks like you're buying from a distance. I'd take a step back and ask what degree of physical and market due diligence you did before purchasing the property.