Anybody thinking of selling Real Estate mid 2024?

[eddy20]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

[Villanelle]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

We have set aside the decision until after the first of the year, but will most likely be selling out rental this spring.  Owned it since 2004, been renting it since 2010.  It makes a decent profit, but compared to the current value, the numbers don't make much sense.  We will likely be buying a place to live (been renting as we've been moving around since 2010) next summer/fall, and it would be nice to pay all or mostly cash, with interest rates being what they are. 

And not having to deal with this property, especially at it continues to age, puts several more points in the "sell" column of the decision. 

The nice thing is that the decision seems to make sense no matter what happens with interest rates and home prices.  If rates go up, then having more money to put down on our future residence purchase makes even more sense.  If rates drop (and that leads to prices rising even more, which I acknowledge isn't a given), then that makes sense, too. If home prices drop, the value of our future house drops, too. 

[Omy]

We sold one rental this year, and it was a HUGE weight off our shoulders - even though we'll have to pay a big tax bill in April.

We will likely sell our other rental when our excellent tenant (my sibling) vacates. That might happen in summer 2024, but we're not in a hurry. That property is less than 10 years old, so it hasn't yet been the challenge that the 35 year old rental had been.

As soon as they are ready to move, we'll sell (maybe 1031 exchange into our eventual retirement home or just sell and pay the taxes.)

Being landlords helped us transition into FIRE, but it hasn't been a super fun retirement plan for us.

[GilesMM]

How is a $650k house at a low rate costing you $4500/mo?


A ten percent rent increase doubles your net to $1000/mo. Feasible?


If you have nine rentals you surely know how to manage expenses, repairs and vacancies.

[Mr. Green]

We're likely selling the first house we ever bought this summer. Tenants in place until the end of July. It's cash flow positive less than $1,000 a year but that's mainly because we had a 15-year mortgage when we lived there and at 2.75% it didn't make sense to go back to a 30-year with investment property interest rates. We have 250-300k of equity that we want to free up since we're retired and having that lump sum available to us while we're younger will have much greater utility than sitting on the house until some undetermined point in the future.  This also allows us to clear the capital gains in a year where there's no ACA subsidy cliff. Presuming that comes back in 2026, selling the house will get a lot more expensive.

[eddy20]

How is a $650k house at a low rate costing you $4500/mo?


A ten percent rent increase doubles your net to $1000/mo. Feasible?


If you have nine rentals you surely know how to manage expenses, repairs and vacancies.

Expenses-mortgage, taxes, insurance, utilities, management fee and lawn care = $4,500 month. Also with AB1482 cannot raise rent 10%, can only raise it 5% plus CPI (next year about 8.6% MAX allowed). This property does not cash flow enough to keep.

[GilesMM]

How is a $650k house at a low rate costing you $4500/mo?


A ten percent rent increase doubles your net to $1000/mo. Feasible?


If you have nine rentals you surely know how to manage expenses, repairs and vacancies.

Expenses-mortgage, taxes, insurance, utilities, management fee and lawn care = $4,500 month. Also with AB1482 cannot raise rent 10%, can only raise it 5% plus CPI (next year about 8.6% MAX allowed). This property does not cash flow enough to keep.

With 10% down, I have you on a $520,000 mortgage at 3.25% = $2263/mo
CA prop tax is 1.1% = $506/mo
Ins = hard to say.  I had a similar value house in CA and paid $4000/yr, so $333/mo.
That totals $3100 leaving $1400/mo mgmt fee and lawn.  If lawn is a whopping $400, mgmt fee is $1000/mo.  You rent for $5,000/mo so your mgmt fee is 20% or so.  20% is quite high. I paid that for a short-term rental with frequent on-site visits for renter and maintenance issues. I paid (in Bay area) 10% for long term rental.  I wonder if you could save another $500/mo on agent fees, cheaper lawn care and also raise the rent another 5% to get this thing a bit more profitable.

[Dicey]

We're actually toying with something different. We're thinking of selling our primary (NorCal) home and moving into the rental (SoCal) that has the lowest tax basis. We'll make that our Primary Residence for two years. We'll probably travel a lot of that time. Then we'll move back to NorCal and take our lower tax basis with us. We can do this three times after the age of 55. Since I'm 65 now, that should work.

Current primary home property taxes are $14k per year. The taxes on the lowest rental are about $3.4k. We're still in the early research stage, but so far, it seems to be allowed under the current system.

We'd have to pay Cap Gains on the sale of our current house, plus selling costs. We want to downsize eventually, and our tenant is very elderly, so we will continue to wait and plan. We're not going to kick anyone out.

[YttriumNitrate]

I have an investment property purchased for $650,000 10/20

With 10% down, I have you on a $520,000 mortgage at 3.25% = $2263/mo

10% down on a $650,000 house leaves a $585,000 mortgage at $2545 a month for P&I at 3.25%.

[Chris Pascale]

My wife, but she's always thinking of selling our house.

Motivating factors include:
 - Nearby unit sold for $700,000 and isn't as nice or big as ours
 - Battery storage unit has been approved within a mile of us
 - We're a bit far from the high school
 - HOA fees are about $7,100 (but we get our money's worth)
 - She really liked when we lived in a smaller home
 - We don't have a yard, so can't just let our dog out
 - She'd like to help our older girls as they move out on their own

I'd rather not sell at this time, but her judgment has served us well in matters like these, and she's always looking at the RE market.

[clarkfan1979]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

I'm planning on selling a long-term rental in Fort Myers, FL in mid 2025 and on a 1031 exchange to purchase a short-term rental/vacation home in the Rocky Mountains, about 30 minutes south of Breckenridge.

The performance of the long-term rental in Fort Myers, FL is good enough to justify keeping it. However, I want a short-term rental in the Rocky Mountains. The quickest path to make that happen is to sell the long-term Florida rental. Florida rental has a 4.875% mortgage rate. PITI is $1525. Rent is $2525.

The short-term rental will be more work, but it will be work that I enjoy and I will also get to use it for myself. If I could get the rent to be $1000 more than the PITI that would be perfect for me. I will probably have more deductions with the short-term rental because I will be spending more time on a property that is 2 hours away and get to deduct travel costs and meals.

[SilentC]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

I'm planning on selling a long-term rental in Fort Myers, FL in mid 2025 and on a 1031 exchange to purchase a short-term rental/vacation home in the Rocky Mountains, about 30 minutes south of Breckenridge.

The performance of the long-term rental in Fort Myers, FL is good enough to justify keeping it. However, I want a short-term rental in the Rocky Mountains. The quickest path to make that happen is to sell the long-term Florida rental. Florida rental has a 4.875% mortgage rate. PITI is $1525. Rent is $2525.

The short-term rental will be more work, but it will be work that I enjoy and I will also get to use it for myself. If I could get the rent to be $1000 more than the PITI that would be perfect for me. I will probably have more deductions with the short-term rental because I will be spending more time on a property that is 2 hours away and get to deduct travel costs and meals.

Hey Clarkfan, just curious if you have ever looked at the economics around on-resort “condos,” like the ones where you basically are buying a hotel room in the building but you can stay there any days you block off?  Those seem very hands off (maybe?) so I assume return potential is far inferior to owning a condo 30 min from Breck for example, but maybe competitive with a public REIT if you use few of the days personally? 

[GilesMM]

My wife, but she's always thinking of selling our house.

Motivating factors include:
 - Nearby unit sold for $700,000 and isn't as nice or big as ours
 - Battery storage unit has been approved within a mile of us
 - We're a bit far from the high school
 - HOA fees are about $7,100 (but we get our money's worth)
 - She really liked when we lived in a smaller home
 - We don't have a yard, so can't just let our dog out
 - She'd like to help our older girls as they move out on their own

I'd rather not sell at this time, but her judgment has served us well in matters like these, and she's always looking at the RE market.

Just curious, but how do you get $7100 value out of your HOA fee?  Thanks

[Chris Pascale]

My wife, but she's always thinking of selling our house.

Motivating factors include:
 - Nearby unit sold for $700,000 and isn't as nice or big as ours
 - Battery storage unit has been approved within a mile of us
 - We're a bit far from the high school
 - HOA fees are about $7,100 (but we get our money's worth)
 - She really liked when we lived in a smaller home
 - We don't have a yard, so can't just let our dog out
 - She'd like to help our older girls as they move out on their own

I'd rather not sell at this time, but her judgment has served us well in matters like these, and she's always looking at the RE market.

Just curious, but how do you get $7100 value out of your HOA fee?  Thanks

Most people can't, but there's 7 people in my house.

For the house, it takes care of:
 - Driveway (got ours replaced this year)
 - Siding
 - Roof/gutters
 - Landscaping

In the community
 - Clubhouse with large gym, sauna, racquetball, ping pong, card room, bar (for parties or club meetings), large outdoor patio
 - Outdoor amenities include heated pool, diving pool, lighted tennis, pickleball, basketball and bocce courts, and playground

It's a premium rate for sure, but the community is well-run, and looks very nice.

[clarkfan1979]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

I'm planning on selling a long-term rental in Fort Myers, FL in mid 2025 and on a 1031 exchange to purchase a short-term rental/vacation home in the Rocky Mountains, about 30 minutes south of Breckenridge.

The performance of the long-term rental in Fort Myers, FL is good enough to justify keeping it. However, I want a short-term rental in the Rocky Mountains. The quickest path to make that happen is to sell the long-term Florida rental. Florida rental has a 4.875% mortgage rate. PITI is $1525. Rent is $2525.

The short-term rental will be more work, but it will be work that I enjoy and I will also get to use it for myself. If I could get the rent to be $1000 more than the PITI that would be perfect for me. I will probably have more deductions with the short-term rental because I will be spending more time on a property that is 2 hours away and get to deduct travel costs and meals.

Hey Clarkfan, just curious if you have ever looked at the economics around on-resort “condos,” like the ones where you basically are buying a hotel room in the building but you can stay there any days you block off?  Those seem very hands off (maybe?) so I assume return potential is far inferior to owning a condo 30 min from Breck for example, but maybe competitive with a public REIT if you use few of the days personally?

I really like the River Mountain Lodge in Breckenridge. It's a 3-star condo/hotel that is a 10 minute walk to the Gondola. The 1 bed/1 bath condos that are 584 sq. ft. are around 700K. I think this would be fun for me and my wife when I'm age 60+

Right now I'm 44 years old and want a single family home in the woods. For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge. I want a recreational property with mountain biking, snowmobiling, sledding, cross country skiing and a few snowboard jumps. Not only do I not mind the work. I want the work. It's kind of like a homesteading passion project with an X-games twist. This is kind of an odd thing to say, but the quietness matters, which the single family home will provide. The condo/hotel will be more convenient and fun, but will be very loud.

[SilentC]

I have an investment property purchased for $650,000 10/20, current value is 900,000. It's a beautiful home with a nice ADU in a nice area. But, the income is poor as it grosses $5,000 per month however nets only $500 per month. I have 9 doors and thinking this under performing property should be sold and just put the money in a money market account. We are retired and don't really need the headache or risk with a poor performing asset. The 3.25% loan, $500 positive cash flow plus principal reduction of $988 per month is enticing but the risk associated with repairs and possible vacancies does not seem worth it. I have been investing in RE for over 40 years and would just like to unload something next year into hopefully a strong sellers market. I think the fed will have to drop interest rates to make the current administration look good and that intern will bring about an increase in values.

I'm planning on selling a long-term rental in Fort Myers, FL in mid 2025 and on a 1031 exchange to purchase a short-term rental/vacation home in the Rocky Mountains, about 30 minutes south of Breckenridge.

The performance of the long-term rental in Fort Myers, FL is good enough to justify keeping it. However, I want a short-term rental in the Rocky Mountains. The quickest path to make that happen is to sell the long-term Florida rental. Florida rental has a 4.875% mortgage rate. PITI is $1525. Rent is $2525.

The short-term rental will be more work, but it will be work that I enjoy and I will also get to use it for myself. If I could get the rent to be $1000 more than the PITI that would be perfect for me. I will probably have more deductions with the short-term rental because I will be spending more time on a property that is 2 hours away and get to deduct travel costs and meals.

Hey Clarkfan, just curious if you have ever looked at the economics around on-resort “condos,” like the ones where you basically are buying a hotel room in the building but you can stay there any days you block off?  Those seem very hands off (maybe?) so I assume return potential is far inferior to owning a condo 30 min from Breck for example, but maybe competitive with a public REIT if you use few of the days personally?

I really like the River Mountain Lodge in Breckenridge. It's a 3-star condo/hotel that is a 10 minute walk to the Gondola. The 1 bed/1 bath condos that are 584 sq. ft. are around 700K. I think this would be fun for me and my wife when I'm age 60+

Right now I'm 44 years old and want a single family home in the woods. For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge. I want a recreational property with mountain biking, snowmobiling, sledding, cross country skiing and a few snowboard jumps. Not only do I not mind the work. I want the work. It's kind of like a homesteading passion project with an X-games twist. This is kind of an odd thing to say, but the quietness matters, which the single family home will provide. The condo/hotel will be more convenient and fun, but will be very loud.

That sounds amazing, I would definitely prefer your planned setup but won’t have time for it basically until I’m 44.  I think ski areas like Breck have decent prospects because they are internationally known so if the US ever has its day of reckoning for all the easy money policy foreigners might just fill the void left by slower domestic demand.

[Bamboo67]

How is a $650k house at a low rate costing you $4500/mo?


A ten percent rent increase doubles your net to $1000/mo. Feasible?


If you have nine rentals you surely know how to manage expenses, repairs and vacancies.

Seems incredibly high to me as well.

[aasdfadsf]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

[GilesMM]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

[expatartist]

Summer 2024 I'll be selling a store I'd originally planned to use as an art studio/gallery, one of my Golden Visa purchases for Greek residence. I changed tack and decided to go for the French artist visa instead. Tenants' lease is up next spring, can't have viewers til they're out as they've been using it as a storage unit packed with furniture from their airbnb rentals. It's got a little view of the Acropolis from street level and lots of natural light from large windows. Will make a pleasant place for someone to work in eventually. Store purchased for 35k Euro in 2020, should gross 50k next year.

I'll save the funds from my remaining Greek properties to purchase a building in France in several years (will need to have my business established there 3 years before mortgage eligibility) that'll eventually have my live/work studio with spaces subletted to artists/orgs who do complementary artwork to mine.

[Dicey]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

[oldladystache]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

[SharkDog]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

[neophyte]

I plan to sell my house that  I bought in 2017 next summer.  It was my primary residence that I lived in with roommates. I've now moved out of state and have no interest in trying to manage it from hours away. It's cash positive, but not enough to be worth the hassle or hiring a property management company.

Not having to deal with it will be a relief.

[nedwin]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

[Dicey]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

Didn't he say a half hour from Breck?

[GilesMM]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

How about 2700 sq ft and 20 acres for $650k?

[clarkfan1979]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

Interesting story about 788 S Guymard Rd., Fairplay, CO 80440. I almost bought it in 2021. It was listed for 369K in August 2021 and sold for 350K. However, it went under contract within 3 days and I was out of town.

It was a fixer that needed work. However, I think there was extra sweat equity because the listing agent photos were the worst I have ever seen. If you can find the listing photos from 2021, there are pictures of random garbage on the lower level that don't really show anything relevant to the house. Was the listing agent trying to promote the garbage?

If I had a chance to see it, I would have offered full asking at 369K. I would have probably spent about 75K on renovations and my own sweat equity. I didn't have 369K cash and would have needed financing. Part of the kitchen was missing so there is a chance it didn't qualify for financing. Based on the photos it looks like a professional flipper bought it. It's possible they offered all cash. 

The flipper took too long on the flip. If they finished in summer 2022 they would have got 750K. In this current interest rate environment, I'm thinking it will sell for 625K to 650K. They will still make plenty of money on it.

 

[SharkDog]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

Interesting story about 788 S Guymard Rd., Fairplay, CO 80440. I almost bought it in 2021. It was listed for 369K in August 2021 and sold for 350K. However, it went under contract within 3 days and I was out of town.

It was a fixer that needed work. However, I think there was extra sweat equity because the listing agent photos were the worst I have ever seen. If you can find the listing photos from 2021, there are pictures of random garbage on the lower level that don't really show anything relevant to the house. Was the listing agent trying to promote the garbage?

If I had a chance to see it, I would have offered full asking at 369K. I would have probably spent about 75K on renovations and my own sweat equity. I didn't have 369K cash and would have needed financing. Part of the kitchen was missing so there is a chance it didn't qualify for financing. Based on the photos it looks like a professional flipper bought it. It's possible they offered all cash. 

The flipper took too long on the flip. If they finished in summer 2022 they would have got 750K. In this current interest rate environment, I'm thinking it will sell for 625K to 650K. They will still make plenty of money on it.

Getting closer with those two.

@clarkfan1979 If you had bought Guymard, what was the plan? Another rental, a flip, or move-in?

[clarkfan1979]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

Interesting story about 788 S Guymard Rd., Fairplay, CO 80440. I almost bought it in 2021. It was listed for 369K in August 2021 and sold for 350K. However, it went under contract within 3 days and I was out of town.

It was a fixer that needed work. However, I think there was extra sweat equity because the listing agent photos were the worst I have ever seen. If you can find the listing photos from 2021, there are pictures of random garbage on the lower level that don't really show anything relevant to the house. Was the listing agent trying to promote the garbage?

If I had a chance to see it, I would have offered full asking at 369K. I would have probably spent about 75K on renovations and my own sweat equity. I didn't have 369K cash and would have needed financing. Part of the kitchen was missing so there is a chance it didn't qualify for financing. Based on the photos it looks like a professional flipper bought it. It's possible they offered all cash. 

The flipper took too long on the flip. If they finished in summer 2022 they would have got 750K. In this current interest rate environment, I'm thinking it will sell for 625K to 650K. They will still make plenty of money on it.

Getting closer with those two.

@clarkfan1979 If you had bought Guymard, what was the plan? Another rental, a flip, or move-in?

It would have been a vacation home for myself and my family and also rent it out furnished as a short-term rental and/or medium term rental. Rent it out short-term during peak times and rent it out at 30-day intervals (medium term) during off-peak times.

We would use it as a family maybe 30-50 nights/year.

[SharkDog]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

Interesting story about 788 S Guymard Rd., Fairplay, CO 80440. I almost bought it in 2021. It was listed for 369K in August 2021 and sold for 350K. However, it went under contract within 3 days and I was out of town.

It was a fixer that needed work. However, I think there was extra sweat equity because the listing agent photos were the worst I have ever seen. If you can find the listing photos from 2021, there are pictures of random garbage on the lower level that don't really show anything relevant to the house. Was the listing agent trying to promote the garbage?

If I had a chance to see it, I would have offered full asking at 369K. I would have probably spent about 75K on renovations and my own sweat equity. I didn't have 369K cash and would have needed financing. Part of the kitchen was missing so there is a chance it didn't qualify for financing. Based on the photos it looks like a professional flipper bought it. It's possible they offered all cash. 

The flipper took too long on the flip. If they finished in summer 2022 they would have got 750K. In this current interest rate environment, I'm thinking it will sell for 625K to 650K. They will still make plenty of money on it.

Getting closer with those two.

@clarkfan1979 If you had bought Guymard, what was the plan? Another rental, a flip, or move-in?

It would have been a vacation home for myself and my family and also rent it out furnished as a short-term rental and/or medium term rental. Rent it out short-term during peak times and rent it out at 30-day intervals (medium term) during off-peak times.

We would use it as a family maybe 30-50 nights/year.

Sounds sweet. Thanks for the reply.

[Villanelle]

Well, we did it.  Sort of.

Told our property manager (whose firm will also be our selling agent) that we were pretty sure we wanted to sell.  Tenant had gone month-to-month, and he went to talk to them.  Before he even mentioned us possibly selling, they said they intended to move out, but wanted to stay until June (school year). 

Technically, that would work for us, but I'd rather have it sold so that when we know where we are moving yet, we have all that cash to buy a residence.  Talked about seeing if they would be willing to allow some upgrades and work, in exchange for letting the stay until June.  And in lieu of raising the rent for monthly rental.

I'll add here that CA recently passed a law that any "displaced" tenant gets a month's rent to help them find a new place.  And our county decided to add another.  So if we just decided not to let them stay, even though they have NO LEASE and we'd have given the required 60 day noticed, we'd have to give them thousands of dollars.  (This just reenforces for me that it is time to leave the CA landording game.) 

However, apparently the conversation about selling inspired the tenant to look elsewhere.  They found a place (we were prety sure it was coming as someone called our PM to check the reference) and have given notice.  This means they are out when we want them out, and we don't have to pay. 

Contactor will walk the place on Monday to suggest some improvements and price some things we are considering.  If we decide to do the work before listing, we will be ready to start the day the tenants leave (April 1). 

It seems to be playing out well, though of course we still have the actual selling part to get through.   

[PMJL34]

We're actually toying with something different. We're thinking of selling our primary (NorCal) home and moving into the rental (SoCal) that has the lowest tax basis. We'll make that our Primary Residence for two years. We'll probably travel a lot of that time. Then we'll move back to NorCal and take our lower tax basis with us. We can do this three times after the age of 55. Since I'm 65 now, that should work.

Current primary home property taxes are $14k per year. The taxes on the lowest rental are about $3.4k. We're still in the early research stage, but so far, it seems to be allowed under the current system.

We'd have to pay Cap Gains on the sale of our current house, plus selling costs. We want to downsize eventually, and our tenant is very elderly, so we will continue to wait and plan. We're not going to kick anyone out.

I don't know how I missed this post, but genius idea Dicey if you can pull it off! But couldn't almost any rich person buy the cheapest/lowest property tax home in Cali and "live" in it for whatever the minimum time is and then buy a multi million dollar home and keep the property tax rate? Seems too easy, no?

[PMJL34]

Exciting news Villanelle!

Just let the tenants stay until June. Maybe you can even do some minor upgrades while the tenants are still there so that it will be "mostly" ready to sell as soon as they vacate. June/July are great months to sell!

[Villanelle]

Exciting news Villanelle!

Just let the tenants stay until June. Maybe you can even do some minor upgrades while the tenants are still there so that it will be "mostly" ready to sell as soon as they vacate. June/July are great months to sell!

Since they've given notice, we are off the hook.  They are out April 1, with no "displacement fee" required.  Best case scenario.  Or almost so.  In my dream world, we'd have it sold by the end of May but if we do all the work we are considering (and the agent things will have a decent ROI), probably the earliest it will list is May 1.  But that's still okay-ish. We just want to have the cash available so we can make a stron offer on a place once we know where we are landing, whenever that is.

If they hadn't given notice, even if they stayed until June, unless we were willing to let them stay, we'd owe them almost $6000.  Again, their lease ended in 2023 so it's not like we are trying to terminate a lease.  Just saying "we aren't going to rent this any more" triggers the clause.  But the law is basically that if you don't let them keep living there as long as they want, you owe them 2 months rent.  So crazy.  (I didn't dig in to see if we could quadruple the rent--there is no rent control--to basically force them out, without refusing to continue renting.  Seems like a loophole in the law.)

We may end up not doing some, or even any, of the work we are discussing, in which case it could probably list the first week of April.

[FINate]

Exciting news Villanelle!

Just let the tenants stay until June. Maybe you can even do some minor upgrades while the tenants are still there so that it will be "mostly" ready to sell as soon as they vacate. June/July are great months to sell!

Since they've given notice, we are off the hook.  They are out April 1, with no "displacement fee" required.  Best case scenario.  Or almost so.  In my dream world, we'd have it sold by the end of May but if we do all the work we are considering (and the agent things will have a decent ROI), probably the earliest it will list is May 1.  But that's still okay-ish. We just want to have the cash available so we can make a stron offer on a place once we know where we are landing, whenever that is.

If they hadn't given notice, even if they stayed until June, unless we were willing to let them stay, we'd owe them almost $6000.  Again, their lease ended in 2023 so it's not like we are trying to terminate a lease.  Just saying "we aren't going to rent this any more" triggers the clause.  But the law is basically that if you don't let them keep living there as long as they want, you owe them 2 months rent.  So crazy.  (I didn't dig in to see if we could quadruple the rent--there is no rent control--to basically force them out, without refusing to continue renting.  Seems like a loophole in the law.)

We may end up not doing some, or even any, of the work we are discussing, in which case it could probably list the first week of April.

Congrats!

RE the bolded: eh, no, you can't do that in CA. See https://oag.ca.gov/consumers/general/landlord-tenant-issues#limits You really did luck out with tenants giving notice when you wanted. As you mentioned up thread, CA isn't attractive for landlords at this point. I expect it will only get worse. (ETA: whether or not a house is under the above restrictions is complicated, would get advice from a pro based on specific details).

As for prepping for selling: IMO it generally only makes sense to do stuff that is obvious in photos and showing. Where needed, floors (new carpet and/or LVP) and paint. Clean the windows inside and out, and do basic yardwork to make it presentable, all stuff you can easily do on your own. Staging is a great way to cover/distract from unsightly stuff. Disclose everything and let the buyer deal with it. Should be able to do these things before May 1.

[GilesMM]

When we sold our CA rental a couple years ago we had the realtor figure out what was needed for prep (some painting and cleanup). Then we inspected. Then we fixed all the section 1 stuff and did the basic prep. The realtor found all the contractors and managed all the work, no charge, and we just paid the bills. We were not in town. The realtor paid for all the staging. Easy sale.

[Villanelle]

Exciting news Villanelle!

Just let the tenants stay until June. Maybe you can even do some minor upgrades while the tenants are still there so that it will be "mostly" ready to sell as soon as they vacate. June/July are great months to sell!

Since they've given notice, we are off the hook.  They are out April 1, with no "displacement fee" required.  Best case scenario.  Or almost so.  In my dream world, we'd have it sold by the end of May but if we do all the work we are considering (and the agent things will have a decent ROI), probably the earliest it will list is May 1.  But that's still okay-ish. We just want to have the cash available so we can make a stron offer on a place once we know where we are landing, whenever that is.

If they hadn't given notice, even if they stayed until June, unless we were willing to let them stay, we'd owe them almost $6000.  Again, their lease ended in 2023 so it's not like we are trying to terminate a lease.  Just saying "we aren't going to rent this any more" triggers the clause.  But the law is basically that if you don't let them keep living there as long as they want, you owe them 2 months rent.  So crazy.  (I didn't dig in to see if we could quadruple the rent--there is no rent control--to basically force them out, without refusing to continue renting.  Seems like a loophole in the law.)

We may end up not doing some, or even any, of the work we are discussing, in which case it could probably list the first week of April.

Congrats!

RE the bolded: eh, no, you can't do that in CA. See https://oag.ca.gov/consumers/general/landlord-tenant-issues#limits You really did luck out with tenants giving notice when you wanted. As you mentioned up thread, CA isn't attractive for landlords at this point. I expect it will only get worse. (ETA: whether or not a house is under the above restrictions is complicated, would get advice from a pro based on specific details).

As for prepping for selling: IMO it generally only makes sense to do stuff that is obvious in photos and showing. Where needed, floors (new carpet and/or LVP) and paint. Clean the windows inside and out, and do basic yardwork to make it presentable, all stuff you can easily do on your own. Staging is a great way to cover/distract from unsightly stuff. Disclose everything and let the buyer deal with it. Should be able to do these things before May 1.

The place is old and looks very dated.  Painting the kitchen and bathroom cabinets will likely go a long way.  It's got a very weird, very colorful backsplash in the kitchen, and super old corian counters.  Many of these things are fairly cheap fixes that we will think have a good ROI.  We will know more when we get the info from the contractor.  I'm not going to do a major remodel, but I'd be willing to put in few thousand, or prbably up to a few tens of thousands, on some basic stuff that I think will make it look a lot better.

It's a large townhouse in an area with mostly larger, expensive single-family homes, and what I'm told is a really good school district.  That makes it super attractive, so I don't imagine it will be hard to sell, as long as it is priced well of course.  It is also a home for <$1m, which is hard to come by in San Diego unless you you are in the outer reaches.  It would probably be a considered a good starter home for most people.  But I still think polishin git up a bit might help us get more for it.  Nothing that takes longer than about a month, max. 

We are across the country so can't do any of the work ourselves.  The PM/agent will be coordinating everything. 

I thought the 10% limit didn't apply because we only own 1 unit, but maybe I'm mistaken.  Even raising it 10% would probably be enough to scare out any tenant, and would be easily justifiable given current market rates, and they fact that they were M-t-M.  I never would have actually raised it 4x, that was just an example for the comment. But I might have done 10%, not specifically for the purposes of driving them out, but because they are m-t-m and rents have gone up.  But I do think the "dislocation" fee of 2x rent is insane.  And I think overall it wil drive up rental rates.  Landlords, like me, will be leaving the market. CA's insanely landlord-unfriendly laws definitely factored into our decision to sell.  They weren't the only, or even the largest factor, but were definitely a consideration and may have been a tipping point.

[FINate]

Exciting news Villanelle!

Just let the tenants stay until June. Maybe you can even do some minor upgrades while the tenants are still there so that it will be "mostly" ready to sell as soon as they vacate. June/July are great months to sell!

Since they've given notice, we are off the hook.  They are out April 1, with no "displacement fee" required.  Best case scenario.  Or almost so.  In my dream world, we'd have it sold by the end of May but if we do all the work we are considering (and the agent things will have a decent ROI), probably the earliest it will list is May 1.  But that's still okay-ish. We just want to have the cash available so we can make a stron offer on a place once we know where we are landing, whenever that is.

If they hadn't given notice, even if they stayed until June, unless we were willing to let them stay, we'd owe them almost $6000.  Again, their lease ended in 2023 so it's not like we are trying to terminate a lease.  Just saying "we aren't going to rent this any more" triggers the clause.  But the law is basically that if you don't let them keep living there as long as they want, you owe them 2 months rent.  So crazy.  (I didn't dig in to see if we could quadruple the rent--there is no rent control--to basically force them out, without refusing to continue renting.  Seems like a loophole in the law.)

We may end up not doing some, or even any, of the work we are discussing, in which case it could probably list the first week of April.

Congrats!

RE the bolded: eh, no, you can't do that in CA. See https://oag.ca.gov/consumers/general/landlord-tenant-issues#limits You really did luck out with tenants giving notice when you wanted. As you mentioned up thread, CA isn't attractive for landlords at this point. I expect it will only get worse. (ETA: whether or not a house is under the above restrictions is complicated, would get advice from a pro based on specific details).

As for prepping for selling: IMO it generally only makes sense to do stuff that is obvious in photos and showing. Where needed, floors (new carpet and/or LVP) and paint. Clean the windows inside and out, and do basic yardwork to make it presentable, all stuff you can easily do on your own. Staging is a great way to cover/distract from unsightly stuff. Disclose everything and let the buyer deal with it. Should be able to do these things before May 1.

The place is old and looks very dated.  Painting the kitchen and bathroom cabinets will likely go a long way.  It's got a very weird, very colorful backsplash in the kitchen, and super old corian counters.  Many of these things are fairly cheap fixes that we will think have a good ROI.  We will know more when we get the info from the contractor.  I'm not going to do a major remodel, but I'd be willing to put in few thousand, or prbably up to a few tens of thousands, on some basic stuff that I think will make it look a lot better.

It's a large townhouse in an area with mostly larger, expensive single-family homes, and what I'm told is a really good school district.  That makes it super attractive, so I don't imagine it will be hard to sell, as long as it is priced well of course.  It is also a home for <$1m, which is hard to come by in San Diego unless you you are in the outer reaches.  It would probably be a considered a good starter home for most people.  But I still think polishin git up a bit might help us get more for it.  Nothing that takes longer than about a month, max. 

We are across the country so can't do any of the work ourselves.  The PM/agent will be coordinating everything. 

I thought the 10% limit didn't apply because we only own 1 unit, but maybe I'm mistaken.  Even raising it 10% would probably be enough to scare out any tenant, and would be easily justifiable given current market rates, and they fact that they were M-t-M.  I never would have actually raised it 4x, that was just an example for the comment. But I might have done 10%, not specifically for the purposes of driving them out, but because they are m-t-m and rents have gone up.  But I do think the "dislocation" fee of 2x rent is insane.  And I think overall it wil drive up rental rates.  Landlords, like me, will be leaving the market. CA's insanely landlord-unfriendly laws definitely factored into our decision to sell.  They weren't the only, or even the largest factor, but were definitely a consideration and may have been a tipping point.

You know your house and market best, so do what makes sense. Paint and floors are just what I typically see as the most common easy/inexpensive cosmetic improvements. Painting the cabinets may be worth it depending on cost. We had a painter do the cabinets in our Boise house and it made a big difference, like we were ready to remodel but we're now happy with the way things are. But it wasn't cheap, around $5k to remove all the faces and paint off-site in a paint booth, and then tent the kitchen to spray the face frames. This was Idaho prices, interested to hear what you're quoted.

For a sub-$1M home in San Diego my guess is getting on the market for the peak spring selling season is more important than making it look fabulous.

[Omy]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

[Dicey]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Congratulations!  Now to deal with the taxes, ugh.

[Villanelle]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Your list is very similar to our possible list. 

It has relatively new flooring in most of the house (combo of LVP and carpet), but much of the other stuff you listed was on our list for the contractor. 

[Omy]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Congratulations!  Now to deal with the taxes, ugh.

Ugh...for real. I'm hoping that we guessed reasonably well for our quarterly payments. We're still a little giddy about selling that rental at the height of the market.

[Omy]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Your list is very similar to our possible list. 

It has relatively new flooring in most of the house (combo of LVP and carpet), but much of the other stuff you listed was on our list for the contractor.

It sounds like the updates you're considering should give you a nice ROI. My feeling was that an expensive starter home should make the buyer feel excited - they shouldn't feel like they're buying a dump and have to put a lot of money into it to make it liveable.

[Villanelle]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Your list is very similar to our possible list. 

It has relatively new flooring in most of the house (combo of LVP and carpet), but much of the other stuff you listed was on our list for the contractor.

It sounds like the updates you're considering should give you a nice ROI. My feeling was that an expensive starter home should make the buyer feel excited - they shouldn't feel like they're buying a dump and have to put a lot of money into it to make it livable.

Yes.  We are wagering on most people in this price point not having much money left for updates. Probably their first home, and likely they are already stretching to get into the RE market by buying this.

 Of course, it is perfectly livable as-is.  It's not like you can't use the primary bath just because it has black and white checkerboard tile floors. (Not our choice; we bought it with that and lived with it) Or cook in a kitchen with weird backsplash (totally our choice, we put them in but they are definitely not neutral).  But I know most people don't want that so it seems like doing what we can without spending a ton (painting cabinets white, not replacing or refacing) probably makes sense. 

[Dicey]

Last summer we put around $30k into our rental townhouse before we sold it. That $30k resulted in a sale that was $75k over what we would have received had we done nothing. (It was extremely dated and worn out from the previous tenants.)

We probably could have spent less, but painting cabinets, adding new hardware, new blinds, new mirrors, new lighting, new paint, new flooring and a new shower made the place pop.

We had multiple offers and the one we chose didn't have ANY contingencies. If it had looked rough and dated, I doubt we would have received an offer without a home inspection contingency. Not having a home inspection negotiation was probably worth $10-15k...

Your list is very similar to our possible list. 

It has relatively new flooring in most of the house (combo of LVP and carpet), but much of the other stuff you listed was on our list for the contractor.

It sounds like the updates you're considering should give you a nice ROI. My feeling was that an expensive starter home should make the buyer feel excited - they shouldn't feel like they're buying a dump and have to put a lot of money into it to make it liveable.

This is so true! Buying a home is an emotional decision. Buyers who fall in love with a home are usually willing to pay more.

[clarkfan1979]

For 700K, I can get 2,000 sq. ft. single family home on 10 acres about 30 minutes away from Breckenridge.

You must be shitting me. Ten acres? Half hour from Breck? I might buy that place sight unseen.

https://www.redfin.com/CO/Jefferson/85-Kenosha-Dr-80456/home/182491017

Wowza! And yet, it's got a crazy sales history. I wouldn't be buying it sight unseen. More research needed.

Those pictures are just too perfect.

That's 900 sf and an hour from Breck.

It can be done.

https://www.redfin.com/CO/Fairplay/3152-CR-14a-80440/home/187384336

https://www.redfin.com/CO/Fairplay/788-S-Guymard-Rd-80440/home/111076886

Interesting story about 788 S Guymard Rd., Fairplay, CO 80440. I almost bought it in 2021. It was listed for 369K in August 2021 and sold for 350K. However, it went under contract within 3 days and I was out of town.

It was a fixer that needed work. However, I think there was extra sweat equity because the listing agent photos were the worst I have ever seen. If you can find the listing photos from 2021, there are pictures of random garbage on the lower level that don't really show anything relevant to the house. Was the listing agent trying to promote the garbage?

If I had a chance to see it, I would have offered full asking at 369K. I would have probably spent about 75K on renovations and my own sweat equity. I didn't have 369K cash and would have needed financing. Part of the kitchen was missing so there is a chance it didn't qualify for financing. Based on the photos it looks like a professional flipper bought it. It's possible they offered all cash. 

The flipper took too long on the flip. If they finished in summer 2022 they would have got 750K. In this current interest rate environment, I'm thinking it will sell for 625K to 650K. They will still make plenty of money on it.

Looks like 788 S Guymard Rd., Fairplay, CO 80440 sold a couple weeks ago for 665K. It was originally listed for 749K and I claimed that it would sell for 625K to 650K. Looks like it sold for a little more than I originally thought. The house is on 7 acres. Most lots in the area (90%) are 1.25 acres.

[FireOnTheMuffin]

I guess this is a thread about selling, but is it accurate that recommendations here usually trend towards sell vs continue renting?  Seems like everyone here is selling, especially the Californias, of which I am one.

[Villanelle]

I guess this is a thread about selling, but is it accurate that recommendations here usually trend towards sell vs continue renting? Seems like everyone here is selling, especially the Californias, of which I am one.

Not at all.  Kind of.  lol

the recommendations are often to sell, but only because in the examples people post (mine included) the numbers rarely make sense to hold.  You can argue about buying for appreciation, rather than income, and a few posters here have done that.  But if you aren't at least close to keeping pace with the market, it's hard to see that making sense, because your equities appreciate, too.  In your case, your properties are actually losing money, not just doing less-well than the stock market. 

That's before you consider CA's tenant-friendly, to the extreme, laws, and the climate and insurance situation there.

The reasons so many CA landlords are selling is because it doesn't make much sense, in most cases, to landlord there.  The numbers just aren't there, which you know because you are in the red on your properties.  (I also saw your PM and sent you a response.)

[Dicey]

I guess this is a thread about selling, but is it accurate that recommendations here usually trend towards sell vs continue renting?  Seems like everyone here is selling, especially the Californians, of which I am one.

Lol, that might be because there's nothing to buy. DH and I are considering the possibility of downsizing, so we are actively looking, but there is nothing out there.

We went to an Open House this weekend and met a young couple with an adorable baby. We started talking shop, and recommended a property they hadn't seen. Both DH and I thought, "Why don't we just sell them ours?", followed by, "And buy what?"