Duplex Sale
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Duplex Sale (by GKARL [PA]) May 20, 2024 4:23 PM
       Duplex Sale (by NE [PA]) May 20, 2024 4:28 PM
       Duplex Sale (by GKARL [PA]) May 20, 2024 5:10 PM
       Duplex Sale (by plenty [MO]) May 20, 2024 7:08 PM
       Duplex Sale (by RB [TN]) May 20, 2024 7:27 PM
       Duplex Sale (by 6x6 [TN]) May 20, 2024 8:35 PM
       Duplex Sale (by plenty [MO]) May 20, 2024 9:19 PM
       Duplex Sale (by David [MO]) May 20, 2024 11:38 PM
       Duplex Sale (by Sean [OR]) May 21, 2024 4:42 AM
       Duplex Sale (by GKARL [PA]) May 21, 2024 6:05 AM
       Duplex Sale (by S i d [MO]) May 21, 2024 8:24 AM
       Duplex Sale (by zero [IN]) May 21, 2024 9:13 AM
       Duplex Sale (by Ray-N-Pa [PA]) May 21, 2024 12:10 PM
       Duplex Sale (by plenty [MO]) May 22, 2024 2:53 PM
       Duplex Sale (by GKARL [PA]) May 22, 2024 8:07 PM
       Duplex Sale (by plenty [MO]) May 22, 2024 8:23 PM
       Duplex Sale (by 6x6 [TN]) May 22, 2024 10:04 PM
       Duplex Sale (by zero [IN]) May 23, 2024 8:44 AM
       Duplex Sale (by GKARL [PA]) May 23, 2024 11:46 AM
       Duplex Sale (by 6x6 [TN]) May 23, 2024 4:21 PM
       Duplex Sale (by zero [IN]) May 24, 2024 8:22 AM
       Duplex Sale (by GKARL [PA]) May 24, 2024 11:18 AM
       Duplex Sale (by zero [IN]) May 25, 2024 9:40 AM
       Duplex Sale (by GKARL [PA]) May 25, 2024 2:49 PM
       Duplex Sale (by GKARL [PA]) May 25, 2024 5:51 PM
       Duplex Sale (by zero [IN]) May 26, 2024 10:34 AM
       Duplex Sale (by GKARL [PA]) May 27, 2024 8:50 PM

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Duplex Sale (by GKARL [PA]) Posted on: May 20, 2024 4:23 PM
Message:

Duplex hit the market on Friday and I have two offers coming in today. An open house is scheduled this weekend and I expect that I'll wrap up things this week. The duplex is half of a twin and the guy who bought the other half is wanting to buy my half as well.

He's a transplant into this area from Boston and my area is cheap compared to Boston. He paid over asking for the half he bought and is offering me the same deal. He had an interesting story to tell that reminded me of the wisdom of culling the herd right now. He has a tenant in one of the units who didn't pay rent on the 1st of the month and when he called the tenant about it, the tenant offered that " I was meaning to tell you........"

This guy seems to be a newbie landlord who is going to learn. As I shared previously, one of the reasons I'm selling this place is the extreme difficulty I've had finding decent tenants. The problem is that the majority of applicants are shaky and similar to the guy he's renting to.

--209.122.xx.xxx




Duplex Sale (by NE [PA]) Posted on: May 20, 2024 4:28 PM
Message:

GKarl, I wonder what wisdom seasoned landlords could honestly pass onto newbie landlords just getting into this business. Kind of tough telling a newbie to do this or do that, when none of that stuff is filling units with decent people these days.The tenant pool is so bad that many people here are selling off. That plus high sales prices. --24.152.xxx.xx




Duplex Sale (by GKARL [PA]) Posted on: May 20, 2024 5:10 PM
Message:

NE, the bloom is off the rose but no one realizes it yet. This is why anyone who's thinking about selling needs to do so now. A bad tenant pool and higher financing costs have not been factored in. What could a seasoned LL tell the newbies? I'd tell them if you must buy now, make sure you minimize leverage. The better case is to not buy at all though. At these prices, there's no room for error. --209.122.xx.xxx




Duplex Sale (by plenty [MO]) Posted on: May 20, 2024 7:08 PM
Message:

Now I'm thinking. As my attempts to rent an upcoming vacancy is not rolling along so well. --172.59.xxx.xx




Duplex Sale (by RB [TN]) Posted on: May 20, 2024 7:27 PM
Message:

Welcome to the Sellers Club. --69.130.xxx.xxx




Duplex Sale (by 6x6 [TN]) Posted on: May 20, 2024 8:35 PM
Message:

Plenty, are you thinking of selling instead? --76.129.xxx.xx




Duplex Sale (by plenty [MO]) Posted on: May 20, 2024 9:19 PM
Message:

Yes. We sold the property next door a few months ago. And been wanting to exit this neighboring property fora while now. --172.58.xxx.xxx




Duplex Sale (by David [MO]) Posted on: May 20, 2024 11:38 PM
Message:

In 30 years Iíve never seen a better time to sell. --199.200.xx.xxx




Duplex Sale (by Sean [OR]) Posted on: May 21, 2024 4:42 AM
Message:

Why do you think the tenant pool has dried up? All good ones bought when interest rates were low? Good ones are staying put in their existing places? --68.186.xx.xxx




Duplex Sale (by GKARL [PA]) Posted on: May 21, 2024 6:05 AM
Message:

Personally, I think rents have just gotten too high and and people are simply pulling back. Keep in mind that everything else has gone up as well. The only people looking are those who have to move due to eviction, unstable life and etc. I think rents will have to drop by 20% or so to bring things back into equilibrium. That also means the real estate prices will need to drop as well. That's going to problematic for anyone who bought recently. I think the fire sales we're seeing on office properties will come to MFH. It won't be as bad as office, but it's going to hurt those who bought recently assuming certain rent and vacancy levels. Rent concessions will be far steeper and vacancy rates/losses far higher than anyone anticipated. There are two sorts of investors here IMHO; pre-covid and post COVID. Anyone who's pre COVID and isn't highly leveraged will probably be fine. Depending on the particulars, post COVID newbies will probably have problems. --172.58.xxx.xxx




Duplex Sale (by S i d [MO]) Posted on: May 21, 2024 8:24 AM
Message:

I don't think rents or home prices will be dropping anytime soon, much less dropping 20%. We still have a backlog of demand against a shortage of 3 - 5 million housing units, and no one is building starter homes.

I see stagflation. Rents and home prices will remain high. Incomes will not rise to match. The reason for this is we've still got piles of Govt infused money sloshing through the system. And we have a whopping pile of federal debt weighing future growth down. "Govt Go Juice" (aka "stimulus") has worn itself out since it began back in 2008. Time to push pause and take a breather.

We may be in for a prolonged period of treading water.

--184.4.xx.xx




Duplex Sale (by zero [IN]) Posted on: May 21, 2024 9:13 AM
Message:

GKARL, happy to hear the sell seems fast and profitable for you.

Still sorry to hear that you are suffering from bad prospects. Fortunately we are always late to the party so there is still a shortage of rentals here as well as a few decent prospects. Word of mouth has been great for me of late. --107.147.xx.xx




Duplex Sale (by Ray-N-Pa [PA]) Posted on: May 21, 2024 12:10 PM
Message:

It is quiet the feeding frenzy over here in Western Pa.

I too see the roots of Stagflation settling in. The good news is the spread isn't as big as it was in the 1970's. Where now might be a good time to sell, I believe it is a better time to be the bank. --24.101.xxx.xxx




Duplex Sale (by plenty [MO]) Posted on: May 22, 2024 2:53 PM
Message:

Just put up yard signs at cross roads today. Going to see if that helps any. Otherwise I'm selling this property. Lots of reasons this is just the reason the bothers me the most! --172.59.xxx.xxx




Duplex Sale (by GKARL [PA]) Posted on: May 22, 2024 8:07 PM
Message:

Both offers I have are over asking. One guy wisely put in an escalation clause raising every offer automatically up to a certain limit. I'm just waiting to see if I can pull an all cash offer.

This is a nice place these guys are excited to get. It's a shame I couldn't find a decent tenant. --172.59.xxx.xxx




Duplex Sale (by plenty [MO]) Posted on: May 22, 2024 8:23 PM
Message:

Following! Glad it's going well! --172.59.xxx.xxx




Duplex Sale (by 6x6 [TN]) Posted on: May 22, 2024 10:04 PM
Message:

GKARL, do you mind explaining the escalation clause?

Maybe an example? --76.129.xxx.xx




Duplex Sale (by zero [IN]) Posted on: May 23, 2024 8:44 AM
Message:

When I sold my personal house we had an offer with an escalation clause.

Ended up not accepting it because the offer we took was as-is, no inspections.

I didn't have things that were wrong, but it adds time and I was selling cheap to off load it.

Had I waited another few months the market started turning and I would have made more for sure. --107.147.xx.xx




Duplex Sale (by GKARL [PA]) Posted on: May 23, 2024 11:46 AM
Message:

6 x 6,

An escalation clause raises the offer by a set amount when a competing offer is more. For example, an escalation clause may say the buyer will automatically raise their offer by $ 500 over an competing offer up to a maximum is $ 275,000. It's a way of automatically bidding up the price.

Zero--Waiving the inspection is a biggie with me particularly since I had one done and have been giving the report out. They can inspect for there own information only, but not to negotiate the price. The guy with escalation is waiving it and that makes his offer attractive. --209.122.xx.xxx




Duplex Sale (by 6x6 [TN]) Posted on: May 23, 2024 4:21 PM
Message:

Thank you, GKARL. --76.129.xxx.xx




Duplex Sale (by zero [IN]) Posted on: May 24, 2024 8:22 AM
Message:

Great news with the escalation guy.

It's Friday morning... have you closed yet? --107.147.xx.xx




Duplex Sale (by GKARL [PA]) Posted on: May 24, 2024 11:18 AM
Message:

Zero:

I'm holding off accepting until I complete the open houses this weekend. I might pull an all cash offer. I set a deadline for best and highest next Thursday at noon. --209.122.xx.xxx




Duplex Sale (by zero [IN]) Posted on: May 25, 2024 9:40 AM
Message:

So there's still time for me to submit my offer! --107.147.xx.xx




Duplex Sale (by GKARL [PA]) Posted on: May 25, 2024 2:49 PM
Message:

Zero, LOL. You've got some stiff competition. Just had my first open house today and one guy wanted to know what it would take to get the place. He's going to submit an offer 18k over my asking which will beat out everyone. He's an investor, says he wants to add to his portfolio and is tired of losing our by being out bid. --209.122.xx.xxx




Duplex Sale (by GKARL [PA]) Posted on: May 25, 2024 5:51 PM
Message:

Let me correct a typo. The one buyer who viewed today is proposing an offer 28k over asking, not 18k. There are two others right behind him at 27k and 25k over asking. Definitely a hot market. You hear about these things but quite another to experience it. --209.122.xx.xxx




Duplex Sale (by zero [IN]) Posted on: May 26, 2024 10:34 AM
Message:

Well I guess I won't be bidding after all.

That's great that your market is so hot and that you will have it sold by the Thursday deadline.

Will these investors be able to stay above water with the purchase price being so high and the tenant pool being so low?

The last house I bought I paid too much for as a rental in this area. Thought my kid was going to take it. Backed out and I still had the place.

Rented it out for the most ever, but if I had not paid cash the financing would have been more than the rents. --107.147.xx.xx




Duplex Sale (by GKARL [PA]) Posted on: May 27, 2024 8:50 PM
Message:

It could very well be that these guys have better luck filling with good tenants. Actually, I have one very good tenant in there now that I placed last summer, it's just here recently that I've encountered a "slugfest" to fill the empty which made me decide to sell. They're betting on future appreciation whereas I'm as cash now sort of guy. It's a good move to sell it IMHO. --209.122.xx.xxx



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