Posted by Will on June 07, 2005 at 19:27:34:
So you’d kick the other tenant out and sell the place with both sides empty?
To each his or her own, I guess! It just goes to show that there is more than one way to do busines!
DUPLEX sale(advice needed) 100%occ. or 50%occ??? - Posted by Sean
Posted by Sean on June 07, 2005 at 09:50:18:
I own a duplex that currently has one side rented. It will be going on the market in the next 30 days, and I am wondering if it would be to my advantage to sell it with one side rented or get both sides rented.
I know if its fully occupied I can attract an investor, but I am wondering if it would be better to market it with one side rented and seek someone who is looking to move in.
Please offer any advice, or ask me any questions pertinant to this deal.
THanks in advance,
Sean
sale(advice needed) 100%occ. or 50%occ??? - Posted by Will
Posted by Will on June 07, 2005 at 15:35:13:
I would try to rent it. I bought a half-occupied duplex in March and it’s fair to say that I used the empty half as a little bit of bargaining leverage.
As an investor, somebody wants to buy a place and start flowing cash–immediately if possible. Look at it this way…isn’t a property worth MORE if somebody can take it over, NOT spend any more money than the purchase price, and basically start making cash and forget about it?
What would the difference be between an investor spending money and time to replace, say, a bathroom floor getting soft around a toilet and that same investor spending time and money to find a tenant?
If it’s empty, you might feel the need to take a lower offer to avoid taking a loss on it every month. Even if it’s not true, if the buyer perceives that might be possible, it may affect what they offer. If it’s full, you can let it sit until you get your price.
Re: DUPLEX sale - Posted by Mr. Big
Posted by Mr. Big on June 07, 2005 at 13:50:06:
I would rent it. It could be several months before it sells and it’s money in your pocket.An investor would much rather see it fully rented. On the off chance that someone wants to occupy one unit they can legally evict a tenant for their own use or a member of the family in most jurisdictions.
Re: DUPLEX sale(advice needed) 100%occ. or - Posted by 50%
Posted by 50% on June 07, 2005 at 11:43:48:
Assuming that both units pretty much match then there is really no need to need to get a renter in there. Having one side rented is enough to prove the rental market. Unless your rental market is real slow, having a renter in there for just one month is nothing special as an invetor would look at the renters as being unproven anyway. Having one side empty will make it much easier to show. You can allow the new buyer the personal choice to rent out the second unit or move in.
Re: sale(advice needed) 100%occ. or 50%occ??? - Posted by ski
Posted by ski on June 07, 2005 at 18:58:11:
I will NEVER buy a property that has a tenant in place. The seller must get rid of him/her. I have done that and have been very surprised that #1 the tenant is a slob, #2 the tenant has not paid in 6 months, There is a problem with the existing tenant and any future renters, etc. etc.