Hello everyone, i just registered and seem to think this site could be very useful for me.
About myself, I am a 24 year old business owner in Minnesota. I use to be a Mortgage Broker and did a little rehab work here and there. Then I decided to open my Auto business. Things are going ok with the store and it can run its self and now I am ready to get back in to REI. Only thing is, I still have 1 of 4 properties I purchased that is killing me. 1200/mo empty for past 1 year. I did some remodeling work, took out a wall, new things throughout. Cant seem to sell it. It seems that if I DO EVEN sell it that all the hard work is not going to pay off. Actually it was the first one i bought. So any tips would be greatly appreciated as I will read up on most topics/posts. Thanks ;D
If you do not mind sharing
what do you owe on it?
what is it appraised at?
what are you asking for it?
how is the market in the area?
I think the bottom line is that if the house is in good condition (you said it was already rehabbed so I’m guessing it is) and it’s been vacant for that long, you’re just asking too much for it.
Even if the market is slow, a redone house will sell if the asking price is considered a good deal. Are you asking for more than the surrounding houses are going for? What do the comps look like? Can you afford to keep paying the $1200 a month in order to maybe get more money at closing?
My theory is always make a little less to get it off your hands so that you can put that money back to work. Every 30 days you’re costing yourself $1200+ in holding costs AND opportunity costs of where you could have spent that money.
I have about 220k in it with what is owed, payments, and rehab costs.
Honestly, Comps go 200k-240k in the neighborhood. One plus thing is that it is on a 1/2 acre lot with huge backyard. I dont know, maybe it is my standards. Its a 3/2/2 with additional non corming lower lvel bedroom/den. Rambler one story style house, no walk out, with about 1600 fsf. Give or take. The garage is non attached, new blacktop driveway, new concrete slab for walkway.
I honestly think its maybe because this was a foreclosure buy out. I am only a partner in this deal and like I said it was my first one. The previous owner divroced his wife due to drug problems, smoked all his mortgage away. Anyhow, I have been thinking of renting it out but never had any luck finding a tenant. But then again I only advertise on free web ads. I also have been trying to rent out my 2004 built townhome. So thats why I ben iffy about the rental scene. I can provide an mls# or addy. Like I said i need 220k for it.
Thanks Tony