All Forum Posts by: Trent Grubaugh

Any other opinions would be welcome!

Hey @JoeDoman, I sent a message. It was my first attempt messaging on here, so hopefully I did it correctly, but let me know if I need to try again!

Hey Josh, the building is in Fowlerville. On your property in AA, did you list with an agent or did you do a FSBO and if so, what's you opinions on the best way to find a buyer on a FSBO?

I've got a quadplex about 60 miles Northwest of Detroit that is generating $50,400 in gross rental income annually. NOI is approx $38,500. Housing and rental markets are very strong and highly competitive in this county. 1 year leases were signed in Oct, Aug, and June 2019, respectively. Thankfully, the 4th unit had a 1 year lease that just ended in Sept, and due to a divorce, I'm very temporarily using that unit myself.

I'm unsure how to determine the value of this property, but using a 1st quarter 2018 appraisial and the 3.5% annual appreciation in the area, the building would be worth somewhere around 270-275k. I want to offer a price point and a cap rate that is attractive to investors to allow for a quick sale, but also allows me to profit as much as possible since this capital is going into another venture. 

I know there are multiple variables that would go into determining a sale price but could anyone offer up some "what price point would you list at" given those numbers? I don't know if it's wrong or right as of yet, but I'm thinking of asking $399,000 at a 9-10% cap rate. The only other quads within a 60 mile radius of Detroit yielding similar returns are priced 450-589k, which is why I don't think I'm not being unreasonable... but I'm open to suggestions and opinions. Thanks in advance!