House for sale in Clearwater Fl, carrying cost more than rent

I just rehabbed a house in Clearwater and have had no offers from FSBO or MLS, I can easily rent it but only for about 300 less than the PITI. I have an offer to lease purchase for full price from an investor who does lease purchases, and I could cash out in a year (possibly) any ideas on what other alternatives I have to not have an aligator.

Was your exit strategy to retail it all along? If so, what happened? Did you overestimate its value or are you asking for more than you should to get some nibbles?

IMHO, if your house has not sold in less than thirty days–in any market–then you have overpriced it. If you bought it right, then you should be able to price it a few percent under market and still make money.

I’m a little concerned about using a lease-option to another investor as an exit, and how does that cure your alligator, anyway? I mean, if an investor does a lease-option with you, then he’s going to lease (and probably option) it to another tenant, so your true repayment risk is not even with the investor, it’s with his tenant, whom he is probably trying to make a profit on, too, which means it’s an even riskier tenant/buyer.

What are the details of your cost, rehab, rent, and value numbers?

I couldn’t agree more with the other poster, it sounds like you need to review your pricing.

You might start giving some thought to incentives like buying down points, paying some or all of the closing costs, paying a certain amount of mortgage payments for the borrower, etc., if you need to market this to move.


Scott Miller

Ok lets move that house, Clearwater will drop 4.2% more this year in value.

First make the house really pretty with curb appeal, whatever it takes. :cool

Second, Spend some $$$ on adversting for a 2 day open house for auction. (Sat / Sun)

Say the house is worth $300K Advertise it for sale at Auction for $199K (yes $100K under FMV)

Third - make it an event, Hot dogs, clown with ballons for the kids, music, offer Realtors 1% to 2% commission if they bring you a sale.

Next - Have Open Bidding sheets in EVERYONES hand that comes in the door to Write down Name, Address Phone, Bid amount, etc.

Let them know Monday you will call them and let them know who gets the house…

Lets say you get 10 bids over the 2 days, on Monday you call the Lowest Bidder and TELL them you Really want them to get the house, BUT someone else bid, XXX amount (The Highest Bidder) and are they willing to pass that offer…

Then call #9, #8, round robin all that day and night…

Most times you will get FMV and sometime 10 to 15% more because folks will fall in love with your nice clean house and remember the excitement around it that weekend.

No or little realtor fees, small outlay to post 100 flyers on Telephone poles, and newspaper adds, and maybe some door knockers…(pay a kid $20 to put em up)

This should do it.

80% of all homes in Austrailia are sold this way and 50% in Europe.

Good Luck :biggrin