This is a really fascinating discussion, with lots of good information.
OK, since people seem to be speculating about my situation, intentions, what cap rate I can get, etc, let me flesh things out a bit more.
SD Realtor: I really like your point in regards to having a plan, but being flexible about it. My plan for the proceeds is to get back into the equity market, which is where I am much more comfortable. I had to sell my equity portfolio (not my 401K, that’s still there) in order to put down 20% on my recent purchase (a 4 bed/3 bath in a pleasant part of suburbia).
The old place is a townhome in north Misson Valley. The cap rate based on what I still owe on it would be just under 10%. The cap rate based on what it’s listed at would be a bit over 7%. The cap rate based on what I think it could actually sell at is 6%. So it seems to make sense for an investor to buy it and rent it out.
I’ve decided to keep it on the market and counter strong offers (cash or very strong conventional) at 10% above list. First one who accepts takes it.
Strangely enough, even though it’s on the MLS and people are making offers on it, I don’t see it on Redfin, Trulia, or any of the other real estate websites. Not sure if there’s a delay in those sites picking up new listings or if there’s an error somewhere. If it is a delay, that puts buyers who use these sites at a significant disadvantage since they’d be coming late to every party.
