keep it or sell? (by J [FL]) May 11, 2019 1:18 PM|
keep it or sell? (by CX [WA]) May 11, 2019 1:44 PM
keep it or sell? (by Robert J [CA]) May 11, 2019 1:49 PM
keep it or sell? (by Oregonwoodsmoke [ID]) May 11, 2019 2:01 PM
keep it or sell? (by J [FL]) May 11, 2019 2:13 PM
keep it or sell? (by Robert,OntarioCanada [ON]) May 11, 2019 2:28 PM
keep it or sell? (by J [FL]) May 11, 2019 2:40 PM
keep it or sell? (by AllyM [NJ]) May 11, 2019 2:51 PM
keep it or sell? (by J [FL]) May 11, 2019 3:04 PM
keep it or sell? (by LindaJ [NY]) May 11, 2019 3:15 PM
keep it or sell? (by J [FL]) May 11, 2019 3:47 PM
keep it or sell? (by RB [MI]) May 11, 2019 4:30 PM
keep it or sell? (by 6x6 [TN]) May 11, 2019 4:36 PM
keep it or sell? (by J [FL]) May 11, 2019 4:42 PM
keep it or sell? (by 6x6 [TN]) May 11, 2019 4:46 PM
keep it or sell? (by J [FL]) May 11, 2019 4:52 PM
keep it or sell? (by 6x6 [TN]) May 11, 2019 5:08 PM
keep it or sell? (by RentsDue [MA]) May 11, 2019 6:13 PM
keep it or sell? (by AllyM [NJ]) May 11, 2019 7:19 PM
keep it or sell? (by LisaFL [FL]) May 11, 2019 11:24 PM
keep it or sell? (by JB [OR]) May 12, 2019 1:56 AM
keep it or sell? (by J [FL]) May 13, 2019 12:29 PM
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keep it or sell? (by J [FL]) Posted on: May 11, 2019 1:18 PM
I have a vacant rental that's remodeled and ready to do something with and make a decision. It is practically in flip condition, except it has new laminate counters instead of stone.
I'm on the fence on whether to keep or sell. I've been trying to brainstorm and do a cost benefit analysis of what to do, but I'm still kind of stuck. Here is my list of pros and cons. I've done them in order from most important to least important. I would appreciate any input. Thanks!
Pros of Selling:
1) My rental is one side of a duplex. Someone else owns the other side (separate deed). I have no control over what/who happens on the other side in the future. It is currently a rental owned by an out of state accidental landlord, so it could be sold to who knows who at any time. Unfortunately me buying the other side is not an option any time in the foreseeable future.
2) Septic system and huge oak trees. No issues at this time but could be expensive if something ever did go seriously wrong.
3) Economy/housing market could go south in the next couple years (no idea), might be harder to unload then if it came to that.
4) It is in flip condition, and it is almost summer. It will be easy to sell now.
Pros of keeping it:
1) If I sell it I lose the income stream. It is a bird in hand, as opposed to taking the money and having to figure out what to do with it.
2) Rents have been going up in this area, although wages here have not kept up.
3) Should show well as a rental and it is summer, so many qualified applicants.
keep it or sell? (by CX [WA]) Posted on: May 11, 2019 1:44 PM
I would worry less about who might buy the other side than who the next renters might be. Maybe you could approach the out-of-state owners and offer to screen tenants at the next vacancy to ensure less problems for your tenants? Like a property manager for them? Might be an additional money stream! --71.212.xxx.xxx
keep it or sell? (by Robert J [CA]) Posted on: May 11, 2019 1:49 PM
Do a tax analysis. Get comps. See if you can find something to do a 1031 exchange into. Knowing all of the numbers and up-tick's would aid in your decision. --47.156.xx.xx
keep it or sell? (by Oregonwoodsmoke [ID]) Posted on: May 11, 2019 2:01 PM
If you think you will sell sometime in the future, then the time to sell is as soon as you finish renovations.
The minute you put a tenant in there, the house gets worn and it doesn't take long before the decorating is tired.
If you rent it out, when you go to sell it, you will probably have to repaint, maybe replace carpet and there might be burns in those countertops.
Would you 1031? Is there anything to 1031 into? --98.146.xxx.xxx
keep it or sell? (by J [FL]) Posted on: May 11, 2019 2:13 PM
Thanks. The out of state owner's tenants have not been an issue for me. There have been several groups of tenants there over the years. I met the owners before they moved to Texas. But I doubt they will keep this place forever and when they sell who knows what I could end up with next door.
There is another half duplex on the street about 3 doors away that was bought about 2 years ago. These owners run an auto repair business ON THE STREET, not on their front yard. They have poles and an awning set up over the junk cars. My concern is that the neighborhood could be going downhill and I could get someone like that next to me someday.
No I don't think I would do 1031. I could use the cash to help pay down my mortgage, if I wanted to do that, and I will need to two reroofs in the next couple years on other rentals.
keep it or sell? (by Robert,OntarioCanada [ON]) Posted on: May 11, 2019 2:28 PM
If want to rent out then consider when the roof needs to replaced install a metal roof which is much wind resistant in severe weather conditions. Many look at the lowest price which is shingles but over the long term, severe weather a metal roof upfront more expensive where if a roof last 20 to 30 years then the cost is a lot less. Straight metal panels come in three grades from residential to commercial. In the meantime equity is being built up. --147.194.xxx.xx
keep it or sell? (by J [FL]) Posted on: May 11, 2019 2:40 PM
What does the roof type have to do with any of this? --72.188.xxx.xxx
keep it or sell? (by AllyM [NJ]) Posted on: May 11, 2019 2:51 PM
I would sell it soon as you don't know what could go wrong with the attached house next door. It could get so bad next door that the home could be trashed and the septic system could start to smell. Are you near water in FL? We are having wetter than normal weather so it might be a good idea to get somewhere more dry although I suspect your soil is sandy and drains well. Any sinkholes nearby? There are just so many things you can't control here that even though you are a good landlord and have it fixed up it's really in someone else's hands next door. Find another house and fix it up with the money before you have to use your own money to fix this one up again due to something next door. Not everyone likes stone cabinet tops. I would not. Please sell. --173.61.xxx.xx
keep it or sell? (by J [FL]) Posted on: May 11, 2019 3:04 PM
Thanks. No I am about 40 miles from the ocean. Serious sinkholes are relatively rare--they make the news when they happen here so that shows you it's not a common thing. --72.188.xxx.xxx
keep it or sell? (by LindaJ [NY]) Posted on: May 11, 2019 3:15 PM
It sounds like this is the time to sell if you were to do it. Having the cash on hand for the other repairs is always a plus. If you don't think you can cover those repairs with the current cash, then I would say sell.
Owning half a duplex does sound like trouble coming. I would not want to deal with those issues.
As I get older, I realize I want to deal less and less with getting tenants and sifting through them. The ones I have are great, so I am happy to keep those. But I do dread looking for new ones. Do you feel the same?
The tax bite of selling hurts, but there is less problems after that, you walk away and enjoy yourself.
keep it or sell? (by J [FL]) Posted on: May 11, 2019 3:47 PM
Thanks Linda. The tax part is unfortunate but I'm prepared for it...
I hate looking for tenants for this particular unit because I always get a bunch of deadbeats applying for this place, or else very young, immature acting people. I don't know if that was because the interior didn't show well (there were some cosmetic problems back then), or the "duplex factor". I think these neighborhoods that are all duplexes around here can be kind of seedy and attract a slightly lower quality tenant than you can get at a SFH. And there's no garage so that could be a turn off too.
I've had more trouble with the tenants I've rented to in the past at this one place than at the others, even though I screened and they qualified on paper. --72.188.xxx.xxx
keep it or sell? (by RB [MI]) Posted on: May 11, 2019 4:30 PM
keep it or sell? (by 6x6 [TN]) Posted on: May 11, 2019 4:36 PM
It sounds like you are leaning more towards selling so maybe that is the way to go.
I just learned something new here. I did not know a duplex could be sold or bought as two separate units. I thought it would be like buying a sfh? --73.120.xx.xxx
keep it or sell? (by J [FL]) Posted on: May 11, 2019 4:42 PM
6X6 I know right, it's kind of weird isn't it? It's commonly done here in my area--separate deeds. Of course many times one LL will own both sides, though. --72.188.xxx.xxx
keep it or sell? (by 6x6 [TN]) Posted on: May 11, 2019 4:46 PM
So if you own both sides do you have two deeds?
What if it needs a roof and the other owner does not agree?
keep it or sell? (by J [FL]) Posted on: May 11, 2019 4:52 PM
Yes one person would have two deeds...
You don't need their permission, you just reroof over your side of the property. But as a result you'll see duplexes with two different roof shingle colors, many times. --72.188.xxx.xxx
keep it or sell? (by 6x6 [TN]) Posted on: May 11, 2019 5:08 PM
Thank you for explaining. --73.120.xx.xxx
keep it or sell? (by RentsDue [MA]) Posted on: May 11, 2019 6:13 PM
Have you spent any time there? We bought a house that we intended to hold and rent. I did some of the renovations myself so I spent some time there. On day 2 it became very clear this would be a flip. --71.10.xxx.xxx
keep it or sell? (by AllyM [NJ]) Posted on: May 11, 2019 7:19 PM
Around here those type houses are called semi detached. They have one center wall in common. The ones behind me here are three story. I was born in one of them behind the house I live in now. They are interesting. The porches are together and some people put a barrier up between the two halves of the porch. There are tiny attics. Back in the mid forties my parents had a young couple living in the tiny attic apartment. The husband was off ending WW II and his wife was upstairs. When he came back, they left. These are brick and had slate roofs, tiny kitchen and long halls upstairs with little rooms. Ugly from my view from my house so I am glad the trees leaf out in spring. --173.61.xxx.xx
keep it or sell? (by LisaFL [FL]) Posted on: May 11, 2019 11:24 PM
Definitely sell it. Take the money while the market is hot. I just did this with two houses after renovating. Got top dollar in less than a week for each one. --216.186.xxx.xx
keep it or sell? (by JB [OR]) Posted on: May 12, 2019 1:56 AM
J, read back through everything you wrote in this post. I think you'll decide that selling is the right choice.
BTW, you may want to contact the owner of the other side and tell them you are considering selling and see if they are interested (they already own one side, they can pick their own tenants, they can own the ENTIRE building, and they might have their own personal reasons for owning both sides). You might just save an agent's commission. --24.20.xxx.xxx
keep it or sell? (by J [FL]) Posted on: May 13, 2019 12:29 PM
Thanks JB. The fact that no one (especially the ones right next door!) has called code enforcement on the new street auto repair shop says it all to me. Especially since sometimes these folks hang out in the street and oncoming cars have to wait for them to get out of the way. It speaks of an "I don't care" attitude in the neighborhood.
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