My Investment property not selling: List for rent/for sale at the same time?

[Coronita]

My comments below

[quote]

I’m selling it for a couple of reasons:

1. I’ve had enough of being a landlord.

[/quote]

Fair enough. What specifically bothers you about it?

[quote]

2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.

[/quote]

Well, are you talking about just that your cash flow is negative $200/month, or is it you are really $200/month, once you factor in that as part of your payments, the tenant is paying the principal part of your mortage too.

[quote]

My current/primary house needs work. I bought it fairly cheap during the housing crisis years.

My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.

I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).

A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]

With the new adjusted rent, are you going to be cash flow+?

[(former)FormerSanDiegan]

[quote=paramount][quote=FormerSanDiegan]What was your original reason for selling ?

What were you going to do with the proceeds.

The rent to price ratio seems to be pretty good for San Diego these days (assuming you can actually get 1750).

As far as “rental season”… while it’s true that you get more traffic in the spring/early summer, my experience in filling my rental house is that it doesn’t matter that much when you market it for rent, with the exception of November/December …

If your reasons for selling it are not valid with a lower price, and you are price-sensitive for your reason for selling, then I would continue to market it.[/quote]

I’m selling it for a couple of reasons:

1. I’ve had enough of being a landlord.

2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.

My current/primary house needs work. I bought it fairly cheap during the housing crisis years.

My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.

I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).

A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]

OK, it seems to me those reasons are still valid… wait it out, keep marketing and maybe consider dropping the price a bit after it’s on the market a couple more weeks.

We sold a house near the peak in 2005 in a fairly strong seller’s market. Had interest, but no offers in the first few weeks, then all of the sudden boom it sold at asking about a month after list. Never changed the price.

[joec]

Would it be better to price it slightly “below” market to get more interest? I saw a house on a walk around the neighborhood and I saw a house list for like 50-100k over what I’d think it’d sell at. After a few weeks, there were signs saying reduced price, etc…

I always thought if you’re too high to start, it “taints” the property and it’s harder to even get people interested enough to look. Make it low to start, people at least look, then if you did your job of making it immediate move in ready, renters who are sick of renting will at put in a decent fair bid.

[paramount]

After reducing the price substantially, I’m still seeing very little traffic.

I’m not convinced my market is a sellers market at all.

Pool of buyers is shrinking at this time of the year IMO, and the few buyers are looking for the deal of a lifetime.

[The-Shoveler]

Don’t know for sure, but I am feeling a little spooked by what is happening to the SmartPhone biz myself so maybe others are feeling the same.

Still people will need a place to live, so maybe put it back up for rent?

[recordsclerk]

Stale listings are bad for sellers. Should have priced it right from the onset. High end homes are a different breed and can be priced high until potential buyer comes along. Normal homes in the 300K range need to be priced correctly from the begining. Listing low to get bidding war is not always a good idea either. You get a lot of low ball bids and usually the higher bids fall out of escrow due to over bidding during the frenzy. Level heads take over and house fall out of escrow.

[(former)FormerSanDiegan]

[quote=paramount]After reducing the price substantially, I’m still seeing very little traffic.

I’m not convinced my market is a sellers market at all.

Pool of buyers is shrinking at this time of the year IMO, and the few buyers are looking for the deal of a lifetime.[/quote]

Based on this thread, you listed around mid July, reduced the price after about 2-2.5 weeks and about a week later are worried that traffic didn’t increase.

If an offer comes within the next 2-3 weeks, it’s still a reasonably a pretty fast sale.

Remember, a lot of folks are on vacation in August. Also, the window for moving in before school starts has also passed.

To sell in the peak part of the season, you’d need to list in March or early April.

[VistaGuy]

http://www.bloomberg.com/news/articles/2015-08-05/redfin-ceo-something-we-ve-seen-in-just-the-last-month-should-make-you-worried-about-the-housing-market

I saw this this morning and it hit home. I sold my house in Vista in June to try and get into a better school district before my daughter starts kindergarten. Based on the current market I think many like myself are content to rent.

[flyer]

I’ve heard from friends who are agents in various areas that things have slowed down, so what you are experiencing seems fairly typical for this time of year.

As has been said, many people are renting now who did not buy in their desired location during the last downturn, so you might want to continue renting out your property until the next peak selling season comes around.

[joec]

[quote=VistaGuy]http://www.bloomberg.com/news/articles/2015-08-05/redfin-ceo-something-we-ve-seen-in-just-the-last-month-should-make-you-worried-about-the-housing-market

I saw this this morning and it hit home. I sold my house in Vista in June to try and get into a better school district before my daughter starts kindergarten. Based on the current market I think many like myself are content to rent.[/quote]

The problem with this thinking and this news article (which I saw live today or yesterday) is that if you look at the chart, it ALWAYS slows down in the latter half of the year. It’s probably been like this for decades and probably won’t change anytime soon since the latter half is during the holidays (thanksgiving, christmas, school starts, etc…), August, many folks travel, school is about to start as well and you usually have to be a resident to get early enrollment, etc…

The chart also says NOTHING IMO about any slowdown since it looks the same as 2013 and 2014.

Also, similar to other posters, you’re going into a mode of just hoping a certain future happens based on what you did in the past. Selling isn’t the problem per se, but thinking it will go down looking at this chart certainly isn’t what I see from this article/chart and just because you sold.

I just checked rental homes in the area and now, they are at 4k/month for an econo-box in 4S.

5 years ago, it was closer to 3k. Renting “sounds” great until your rent gets jacked up yearly and having to move with a family/kid sucks. Locking up flat “rent” is awesome if you bought when things weren’t crazy. I still see prices heading up ~5% a year and just this weekend, it was reported in the UT that San Diego has one of the lowest, if not the lowest housing stock in the nation (or something)…

You could also state I have owner’s bias as well, but the rents at where they are in CV or 4S isn’t going to make anyone sweat that home prices are going down anytime soon if they bought nearer to the lows when their mortgage is closer to 2k/month.

The chart/article just doesn’t state to me a problem in the market at all.

[urbanrealtor]

[quote=The-Shoveler]Don’t know anyone who has done that but there seems to be no shortage of people wanting to do lease-option-to-buy right now.[/quote]

Yeah. Don’t ever do that.
Really bad idea.

[urbanrealtor]

[quote=paramount]

I’m selling it for a couple of reasons:

1. I’ve had enough of being a landlord.

2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.

My current/primary house needs work. I bought it fairly cheap during the housing crisis years.

My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.

I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).

A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]

I know you and I have not seen eye-to-eye in the past but I say this out of genuine concern.

Get a property manager.

I have done more of that in the last 3 years and I have come to the conclusion that its actually more risky to manage your own rental than to manage your own purchase.

Waaaayy too many ways to get sued or lose a shit-ton of money based on seemingly innocuous or friendly decisions.

Good luck to you.

[paramount]

[quote=urbanrealtor][quote=paramount]

I’m selling it for a couple of reasons:

1. I’ve had enough of being a landlord.

2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.

My current/primary house needs work. I bought it fairly cheap during the housing crisis years.

My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.

I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).

A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]

I know you and I have not seen eye-to-eye in the past but I say this out of genuine concern.

Get a property manager.

I have done more of that in the last 3 years and I have come to the conclusion that its actually more risky to manage your own rental than to manage your own purchase.

Waaaayy too many ways to get sued or lose a shit-ton of money based on seemingly innocuous or friendly decisions.

Good luck to you.[/quote]

Thanks I really appreciate yours (and all piggs) advice.

[scaredyclassic]

[quote=paramount][quote=urbanrealtor][quote=paramount]

I’m selling it for a couple of reasons:

1. I’ve had enough of being a landlord.

2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.

My current/primary house needs work. I bought it fairly cheap during the housing crisis years.

My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.

I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).

A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]

I know you and I have not seen eye-to-eye in the past but I say this out of genuine concern.

Get a property manager.

I have done more of that in the last 3 years and I have come to the conclusion that its actually more risky to manage your own rental than to manage your own purchase.

Waaaayy too many ways to get sued or lose a shit-ton of money based on seemingly innocuous or friendly decisions.

Good luck to you.[/quote]

Thanks I really appreciate yours (and all piggs) advice.[/quote]

it does seem fraught with potential peril. if you dealwith the wrong person. sheesh, making me nervous…

[urbanrealtor]

[quote=scaredyclassic]
it does seem fraught with potential peril. if you dealwith the wrong person. sheesh, making me nervous…[/quote]

Seriously, I am about to get an attorney to certified mail a deposit refund because the tenant is fucking insane and I suspect tossed the refund check so he can sue for damages.

[Author]

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