Author Topic: Trying to unload a cheaper rental property  (Read 2696 times)

WordMan

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Trying to unload a cheaper rental property
« on: September 21, 2015, 03:12:40 PM »
So I live in the southewest US and own a piece of rental property (land and a trailer) in rural Florida. I own it free and clear. At one time I lived close to the property but haven't for several years. During this time I have rented the property out, with my father acting as my local representative to collect rent, coordinate repairs, etc.

My dad is no longer in a position due to his health to be a part of this marginally profitable and largely annoying investment. Everyone agrees we need to sell. I don't need the money but  I sure don't want the headaches anymore, either.

And here is where I find my dilemma. This property (land and dwelling combined) is probably worth around $20k. (We are talking a very rural area here.) I had a rent to own tenant as recently as 3 months ago but had to terminate the deal. I absolutely will not do a rent to own again. Total nightmare for me. It's got to be a cash deal as I want to walk away - far, far away! - once the sale is complete.

I've also tried Craigslist to sell it outright. That seems to be a sketchy situation, too, that has resulted in several broken appointments to see the place etc. And no real estate agent I've talked to will put any time into selling this place. And I certainly don't blame them as there is little commission involved.

So how does one move a cheap property? I am thinking there must a be a target audience of locals in a given market - even small markets- that like to pick up and work investments like this, but I have no idea how to find them.  Was also considering an auction, although I have no experience with that and am not even sure it's a solid option.

I would very much appreciate any suggestions/advice from anybody who has dealt with this issue. Thanks!

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5159
Re: Trying to unload a cheaper rental property
« Reply #1 on: September 21, 2015, 04:31:53 PM »
Try Zillow FSBO.  Check out the local real estate investors' association in that area and advertise it to those folks.  Have someone put a FSBO sign on the property with a local family member that can show it.  Good luck!

sammybiker

  • Bristles
  • ***
  • Posts: 381
    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Trying to unload a cheaper rental property
« Reply #2 on: September 22, 2015, 04:07:03 AM »
I'd hop on BiggerPockets and try and find some wholesalers working in that area.  You probably ran into some on craigslist but the quality coming from BP will be higher.  These guys might lowball you but they also probably have the network to get the property sold.

In addition, you can negotiate a flat fee with a RE agent to ensure it is worth their time.  Yes, this is more expensive for you but when you want the property sold, you have to do it.

My agent, when dealing with properties under X (generally <50k), requires a flat rate of $1,000 for his time.  Fair enough.

I'd be curious to hear why the rent to own went so poorly? 

SwordGuy

  • Walrus Stache
  • *******
  • Posts: 6317
  • Location: Fayetteville, NC
Re: Trying to unload a cheaper rental property
« Reply #3 on: September 22, 2015, 04:53:36 AM »
Second on the Real Estate Investor's Association.  But you can't sell it at retail price to get them to buy it.  You'll have to sell it at 50-75% because they have to make money, too.

Personally, I would forget what it's "worth" in dollars.

It's apparently "worth" far more in aggravation.

Sell it at a price that will move it quickly.

WordMan

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Trying to unload a cheaper rental property
« Reply #4 on: September 22, 2015, 03:05:58 PM »
Great suggestions. Appreciate everyone's comments!

Sammybiker - This was my second attempt at Rent to Own. The first time (different property) went great but on this go around, it was a total mess. Tenants did not have a very firm grasp on the concept of rent to own in that they wanted all of the benefits of both renting and owning,without any of the responsibility of either. Also, I did not vet them very well as they were friends of family. Big mistake on my part. They paid late and constantly demanded repairs that were clearly outlined in the deal as their responsibility. And again, I am about 1000 miles away and it was very difficult for me to find reliable people to help me with anything. Final straw was when there was  a fire (which they caused) and demanded to know when I was going to buy them new stuff. And that's when I knew we were done.

sammybiker

  • Bristles
  • ***
  • Posts: 381
    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Trying to unload a cheaper rental property
« Reply #5 on: September 22, 2015, 08:09:13 PM »
Wow, that sounds like a pretty awful ordeal.

Best of luck with the sale.

clarkfan1979

  • Handlebar Stache
  • *****
  • Posts: 1968
  • Age: 40
  • Location: Pueblo, CO
Re: Trying to unload a cheaper rental property
« Reply #6 on: September 25, 2015, 12:34:07 AM »
I would offer at 2K-3K commission to an agent that sells it. You could offer a piece of the action to the realtor. Tell them that you want to walk with 15K in your hand and 1k for additional closing costs, so they get an profit above 16K.

I bought a house for 95K in Florida. It was a foreclosure and a total pain in the ass. I am assuming that my real estate agent only got 3% commission. I felt bad. It wasn't worth it.

adamcollin

  • Stubble
  • **
  • Posts: 154
  • Age: 29
  • Location: Texas
Re: Trying to unload a cheaper rental property
« Reply #7 on: September 25, 2015, 11:13:00 PM »
I would suggest you to keep the property and rent it out. You can hire a property manager (I'm sure you can find one serving that area) You will save yourself from the hassles of rent collection and other stuff. You should wait for property price to rise further before you sell it.