I currently own 5 duplexes, 10 total rental units. Most listings I see are in the $115K to $125K range, rents average about 700 / mo per 3/2 unit. All built in 2005, concrete block construction on slabs. Well and septics. Average rents in the $700 per month range. Occupancy is good, was 100% for over a year, just had 2 move out.Trying to develop an exit to use the cash to 1031 into a MHP.Anyone had success using Loopnet, craigslist or others to sell? Trying to avoid the Realtor commissions.I was considering selling them as a package, listing them in the $110,000 range for a quick sale. I see some of the listings in the $120K and up range sitting for a while. Most of the upper end prices have garages, mine do not.Thoughts - ideas?Thank you.PS - Kristin, considering SC also so if you come across anything…
Is there any equity in the properties. My only advice is that realtors are worth their fees. Most that try to sell themselves to save money usually regret the waste of time.
Coach62, I totally understand your desire to save Realtor Commissions by listing your Duplexes yourself. If you were selling a MHP, I would recommend trying to sell the MHP by yourself on National Websites such as MobileHomeParkStore.com, LoopNet.com and any other National Websites.Since MHPs are so few and far between (low supply), National Websites are a great way to list and find them.As for Duplexes they seem to have more of a local demand (higher supply). Thus, if you would like to try to sell them yourself, I would suggest more of a Local Website such as Craigslist for your city or area.I agree with Greg:'My only advice is that realtors are worth their fees.'I am a SC Licensed Real Estate Broker-In-Charge. However, I do not agree with Greg because I am a Realtor.I agree with Greg because I have seen this in action. Realtors are able to give more exposure to listings. More exposure equals faster sales with higher prices.There is a Time Value Of Money. TVM is ‘the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity’.Thus, the faster you sell then the faster you are able to invest in a more lucrative investment.If you still desire to sell the Duplexes yourself, I would recommend for the next 2-3 months trying to sell your Duplexes yourself locally on Craigslist (for free). Even though Duplexes have more of a local demand you can also list them Nationally (I just looked on LoopNet and it says that you can add a Listing for free…since it is free it does not hurt to try). Be willing to give the Buyer’s Real Estate Agent (if they bring you a Buyer) a Commission if it sells. You would still be able to save the Sellers Agent’s Commission.If the Duplexes do not sell in 2-3 months, list the Duplexes with a Local Commercial Realtor who deals with Multi-Family Properties.By listing your property with a Local Commercial Realtor it will be placed in the Local MLS Database. This is really the best place for a Duplex.I wish you the very best!
Coach, before you try you hand at parks really do more analytical study as to changing direction. Your present properties are close by and management and maintence issues are easily solved. Our parks are within 2 miles of our home so management and operational aspects are easy–thus if parks are within 2 hours of your home base maybe a thought but not all figures given by sellers are reality but once your name is on the title the REAL world of numbers start–so be very careful!!!
Thanks all, good thoughts. Greg, I own the properties free and clear. I bought them about 4 years ago.Carl, my main issue is I live in a very high dollar area of FL, Naples. Finding properties with decent ROI is next to impossible in my immediate area. My current properties I found with a bit of luck and good timing. They were a short sale, the deal was already approved, the buyer backed out, my timing was perfect so I just stepped in.Kristin - that was basically my plan, see if I get lucky with a quick sale on my own, if not list them after a couple of months. PS - is there any way to get notices when someone replies to a post? I don’t see a subscribe.
I would refinance the duplexes to the maximum level their rents will support. That way you have your cake and eat it too. You can always sell at a later date if you chose.
If you go with a broker, use one that specializes in MHPs in your area. Don’t hire a general commercial broker who sells gas stations, self-storage, apartments, and just anything that comes along.My 2 cents worth.-jl-
With all due respect to agents and brokers, including Kristin and a friend who is a retired agent, I both bought and sold SFR’s without agency. However, I did find that it was much easier to buy an SFR than sell one by myself. The buyers always seemed to be suspect of you and many of them, in particular first time buyers, didn’t know beans about real estate. If a buyer brought an agent, that was ok but he would only get the buyer’s half of the commission, I retained the seller’s half.In order to price for a sale, use what the market is telling you. That is, for a quick sale price slightly under comps to get a phone call or drive by. Without a phone call or drive by you won’t get an offer, unless it’s a blind low-ball offer, nyet!You might also try, this is what I would do, selling 2 or 3 duplexes and borrowing on the other 2 or 3. This gives you a stack of cash, a very powerful tool, and an ace-in-the-hole, so to speak. Either way, keep us posted; I for one love a good success story. Jim Allen
Thanks everyone. Good ideas here. I’ll update as needed