Posted by William on November 17, 1998 at 21:02:31:
THANKS for everyone’s input!
What about if I L/O or owner financed to an investor,
since the two TH’s currently have tenants in them…would that make sense??? Anyone?
Thanks.
Hold or Sell? - Posted by William
Posted by William on November 17, 1998 at 16:57:28:
I need some advice from the experts.
(1.) I have a couple of TH rentals ($45K range) currently
with tenants. About four years agoit was apprasaised
at about $60K. It was bought for $45K and now they are being marketed for $44K -$50K in that area.
(2.) About $100/month cash flow
(3.) Generally a lot of headaches with tenants not paying
(I guess neighborhood attracts those kind of people)
(4.) Neighborhood appears to be depreciating in prop value
(5.) Now a lot of TH’s for sale in this neighborhood
(6.) About $27K reamining mortgage on one TH and about $40K on the other TH
My main headache is lately people move in apy a couple of
months…then the court routine and clean /repair TH AGAIN.
Any advice from the knowledgeable experts???
Re: Hold or Sell? - Posted by Dave T
Posted by Dave T on November 17, 1998 at 23:14:30:
If you want to continue holding your properties for rental income, be more diligent with your tenant screening and collect higher security deposits. What does your state allow for a maximum security deposit. For example, MD will allow a maximum security deposit of two months rent. If you are getting tenants with questionable credit histories and/or landlord references, just collect the maximum security deposit allowed by your state law.
If you choose to sell, most likely your local state law dictates that the sale will be subject to existing leases. Therefore, if you have tenants on long term leases, your buyer will, by default, be an investor.
Both… - Posted by Mr Donald
Posted by Mr Donald on November 17, 1998 at 19:45:32:
Sounds like a quality of life issue here. How are you screening your tenants? Do the L/O thing (market it as Rent-To-Own) and you should realise that your tenant problems should dissipate. Just be sure to vet your candidates accordingly, and collect a reasonable, if not sizeable, non-refundable option consideration.
Try an ad like this: “Rent-To-Own, $3K down, $500/mo.” Now the money that they’ll be putting “down” is in no way to be construed as a down payment, but in actually is the non-refundable option consideration.
There’s more to this scenario - and there are reputedly some excellent courses on L/O’s here and elsewhere.
Re: Hold or Sell? - Posted by charlesdelaware
Posted by charlesdelaware on November 17, 1998 at 19:41:41:
Try a lease/option whereby the tenants pay a monthly option fee that is credited towards your sales price of perhaps $59,900 supported by your appraisal. Typically lease option tenants will take care of the property better because they feel they are building equity in the property.
I am no expert as I am 6 months into a lease/option SFR but so far the tenants have been excellent.
Good Luck
Also, if you are able to finance the TH that you have more equity in, consider that. No landlord hassles as you will be the bank.
Re: Hold or Sell? - Posted by phil fernandez
Posted by phil fernandez on November 17, 1998 at 19:34:06:
William,
Lease options would work good here attracting a better type of tenant. They’ll take better care of the condo because it will become theirs when they excercise the option to purchase. The rents will come in on time for the same reason.
And the fact that it appears you are in a declining market, trying to sell the condos conventionally will not be easy and may take a long time to sell for perhaps very reduced prices. Buyers will usually pay top dollar both in rents and purchase price for a lease option.
Re: Hold or Sell? - Posted by William
Posted by William on November 18, 1998 at 12:36:43:
I guess one of the main problems is the neighbor generally attracts mostly those kind of tenants that
are potential problems.
Would you sell or hold?
What about me owner financing to an invetsor.
The PI and taxes is approximately $363.00 per month
on the TH’s. The rent in the area is $520 - $575 per month. maybe I could sell to buyer at $500.00/month
low dow payment to attract buyers.
The I will have no maintance, no taxes, no running after tenants to pay.
What do the experts think???
Thanks.