 Duplex Sell or Hold? (by RachSuze71 [NC]) Apr 27, 2017 1:19 PM
 Duplex Sell or Hold? (by Robert,Ontario,Can [ON]) Apr 27, 2017 1:52 PM
Duplex Sell or Hold? (by Smokowna [MD]) Apr 27, 2017 2:27 PM
Duplex Sell or Hold? (by Moshe [CA]) Apr 27, 2017 2:28 PM
Duplex Sell or Hold? (by Landlord ofthe Flies [TX]) Apr 27, 2017 3:00 PM
Duplex Sell or Hold? (by Pattyk [MO]) Apr 27, 2017 3:40 PM
Duplex Sell or Hold? (by Lynda [TX]) Apr 27, 2017 5:32 PM
Duplex Sell or Hold? (by MMIT [VA]) Apr 28, 2017 6:10 PM
Duplex Sell or Hold? (by Rachsuze71 [NC]) Apr 28, 2017 7:53 PM
Duplex Sell or Hold? (by cjo'h [CT]) Apr 28, 2017 9:07 PM
Duplex Sell or Hold? (by WMH [NC]) Apr 29, 2017 4:54 AM
Duplex Sell or Hold? (by Rachsuze [NC]) Apr 29, 2017 5:34 AM
Duplex Sell or Hold? (by nhsailmaker [NH]) Apr 29, 2017 6:33 AM
Duplex Sell or Hold? (by Rachsuze71 [NC]) Apr 29, 2017 6:52 AM
Duplex Sell or Hold? (by Ray-N-Pa [PA]) Apr 29, 2017 2:34 PM
Duplex Sell or Hold? (by RachSuze71 [NC]) May 1, 2017 12:04 PM
Duplex Sell or Hold? (by RachSuze71 [NC]) Posted on: Apr 27, 2017 1:19 PM
Message:
Hey there fellow experienced landlords and investors. I have a 1940's Craftsman duplex, had it for about 9 years. Its been in demand and a pretty solid rental. However we just had a market analysis done by a very knowledgeable realtor and realized its underperforming, but we can potentially get a great sale price if we sell. Current tenants happen to be moving the end of the month so we can get new tenants at higher rental rates. We just replaced the roof and did some light improvements so ready to re-rent OR sell. Charlotte market is strong for selling currently. I can probably make 50-60% if I cash out. If I keep it I can get closer to 11% ROI up from 8%. Its a great location very hot area close to the city. Weighing pros/cons of keeping, costs of repairs on 1940's house HVAC probably next to go, on its last leg. Or sell now & re-invest while market's in my favor. Look forward to hearing your opinions. Thanks! :) --98.24.xx.xxx |
Duplex Sell or Hold? (by Robert,Ontario,Can [ON]) Posted on: Apr 27, 2017 1:52 PM
Message:
Real estate is always interested in selling that is how they make commission. If one is going to buy a rental complex then selling maybe a option but what are going to buy for the same amount of money that you sell for. If it is duplex then installing a split type of heat pump which is used for heating and cooling all year round then separating out the heat at the same time. Consider looking around to compare other types of rental units. Under performing maybe. HVAC generally will last 10 to 20 years where if the cost is spread over that time it is not that much. A HVAC system is not replaced every year. Having a energy efficient heating and cooling system will always bring in higher rent. A roof will last 10 to 20 years. Is the structure solid then everything else over time can be replaced. Certain components have life expectancy limits. --74.220.xxx.xx |
Duplex Sell or Hold? (by Smokowna [MD]) Posted on: Apr 27, 2017 2:27 PM
Message:
Do you have something you would replace it with? When you say that it is in demand. Will that demand stay for five six years?
HVAC is just a day to replace, if you find a moonlighter it could take more however my point is that it is an easy and quick upgrade unlike a kitchen or bath.
The fact that you have a new roof, I think is a big plus for a buyer. If you could sell into something that you like better now would be a fun time to do it.
--74.96.xxx.xxx |
Duplex Sell or Hold? (by Moshe [CA]) Posted on: Apr 27, 2017 2:28 PM
Message:
Presently, RE prices are increasing.
If you sell now, you will get today's price. If you sell next year, you will get next year's price.
If you hold and re-rent, rental rates are also increasing.
If you sell now, then some else will be faced with your dilemma in the future.
--47.139.xx.xxx |
Duplex Sell or Hold? (by Landlord ofthe Flies [TX]) Posted on: Apr 27, 2017 3:00 PM
Message:
Had a similar situation. Let the market decide. Did a market analysis on the property and listed it for the top of it's class in price. If it received an offer for my price, I'd sell, if not, I'd rent. Put the house on the market on a Friday, and by Monday, I had 7 offers, two over list. Needless to say, I don't own that house anymore.
You may have better luck since it's an old craftsman, buying something cheaper to maintain. --99.125.xxx.xxx |
Duplex Sell or Hold? (by Pattyk [MO]) Posted on: Apr 27, 2017 3:40 PM
Message:
if you sell, what will you do with the money?
what does your tax preparer say about taxes? --184.206.xxx.xxx |
Duplex Sell or Hold? (by Lynda [TX]) Posted on: Apr 27, 2017 5:32 PM
Message:
You have an asset that has been pulling in money for 9 years. You have put money into it for upkeep and upgrades. It is in a great shape in a hot location. You know you can get a higher rent.
Your "under performing" asset is someone's opinion based on a numbers game--and numbers can be slanted to show all sorts of things.
Also look at it from the other side. While high prices are good for a seller, when you turn around to buy something else, you are now paying out higher for your new purchase.
I've always thought that you make the most money with a buy and hold business, where you keep the properties till the tenants pay off all your mortgages. You shd only sell if:
-the property is losing money and you need to stop the bleeding
-you need the money for something WAY more important like an operation
-you want to invest in flips instead of having tenants, a whole dif business
-you are moving(?) to a new state
-you are ready to retire and end your RE business
Otherwise, raise he rent, sit back and pull in the profit.
--108.87.xx.xxx |
Duplex Sell or Hold? (by MMIT [VA]) Posted on: Apr 28, 2017 6:10 PM
Message:
Have you looked into doing a 1031 exchange? Use a 1031 exchange to get more doors or get a better property while delaying capital gains taxes.
What part of Charlotte are you in? --174.193.xxx.xxx |
Duplex Sell or Hold? (by Rachsuze71 [NC]) Posted on: Apr 28, 2017 7:53 PM
Message:
Thanks so much for the feedack everyone! I'm in the Charlotte NC area. I'm not sure what I'd reinvest in if I sell, that's of course part of the dilemma. Sellers market here so yes good for selling, bad for buying. Might pivot away from RE awhile and invest in some mutual funds! I'm stubborn when it comes to buying any investment that's not a great deal. But I also think that a duplex will only appreciate to a point, its not a single family. Tough one! --98.24.xx.xxx |
Duplex Sell or Hold? (by cjo'h [CT]) Posted on: Apr 28, 2017 9:07 PM
Message:
Susie Q, I posted a response last night,but the Omadhan obliterated it.Sorry you didn't get it............Charlie......................................................... --174.199.xx.xx |
Duplex Sell or Hold? (by WMH [NC]) Posted on: Apr 29, 2017 4:54 AM
Message:
Is this the only rental you have? --173.22.xx.xx |
Duplex Sell or Hold? (by Rachsuze [NC]) Posted on: Apr 29, 2017 5:34 AM
Message:
Yes this is currently my only rental and purchase price was $149k in 2008, projected new rents will be $1800/month gross. Its a solid ROI I don't deny that. I sold off some other lower performing rentals and made some solid profit and reinvested in some flips last year. Was poised to continue doing 2-3 flips per year but then prices shot up and it quickly became a seller's market in Charlotte over the last 6-9 months. --98.24.xx.xxx |
Duplex Sell or Hold? (by nhsailmaker [NH]) Posted on: Apr 29, 2017 6:33 AM
Message:
You will not be able to find anything to buy in this market - HOLD. If you dont find a 1031 property to purchase get ready for a big TAX HIT --96.61.xx.xx |
Duplex Sell or Hold? (by Rachsuze71 [NC]) Posted on: Apr 29, 2017 6:52 AM
Message:
I agree nothing else to buy right now anywhere close to that. But also everyone is always suggesting a 1031 rollover like its magically eliminating any eventual tax hit. My husband always says and I tend to agree, its kicking the can down the road & you take a bigger hit eventually. I guess unless you keep rolling over till your dead LOL! Plus this is a long term hold not a short term cap gain. But yes we could do a 1031 rollover on this having to buy something if equal or greater value. I already have a qualified intermediary lined up if needed. --98.24.xx.xxx |
Duplex Sell or Hold? (by Ray-N-Pa [PA]) Posted on: Apr 29, 2017 2:34 PM
Message:
I am not sure what you want to do with your life. For some folks, having a place paid off is sorta like an annuity. Then for others at the same age, they might want to travel and the same property as an anchor preventing them from traveling and seeing the world.
Being a LL is a great financial decision - and how you do it will determine how happy you will be.
--24.239.xx.xxx |
Duplex Sell or Hold? (by RachSuze71 [NC]) Posted on: May 1, 2017 12:04 PM
Message:
My husband and I will most likely hold this property and let it ride. Thanks everyone for your input and suggestions! --98.24.xx.xxx |
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