Hi everyone, here's my situation.
My wife and I have a condo we're looking to sell. We live in Houston and the Condo is in San Antonio. We have it rented until the end of February 2020. I am going to use the condo to start bigger real estate investments but I want to get the timing right. Should I allow the tenant to sign another year and then sell the condo or should I let him walk when the lease is up so the condo would be empty upon selling? I am also looking to do a 1031 exchange hopefully into a multifamily. I wouldn't know if there are any other hoops to jump through in this case.
I am also getting my real estate license since I've been immersed with the idea of finding wealth through real estate so if there are any suggestions to how to list my own property they would be welcomed.
I would let ur tenant go month to month after the lease is up. That will give you a few options when you sell. You keep the tenant & sell it as a cash flow property or the buyer has the option to move into the condo if they want.
@Danielle Perrone thank you. Would you happen to know if a lease would be different month to month or can I simply use the same paperwork and the terms is month to month?
Thank you so much for your response.
Have you seen the inside of the property recently? It's definitely easier to sell if you can market it to both investors and regular home buyers, so I wouldn't sign a new lease. The cleanliness of the tenant will determine whether or not you should go month to month until it sells. As a PM and landlord, I've had tenants who were fine with cleaning up for showings, along with other tenants who are messy and will actually hurt the chances of a sale.
I've also listed my own properties as an agent. There really isn't anything different about the process, you just have to make sure that it's clear that the seller is an agent. You can reach out to a local agent to ask them to hold open houses or do last minute showings for people who don't have an agent. (I'd be happy to help with this if you don't already work with someone here.)
Oh, and if you're listing it to sell, quality photos are important. I use Maverick Photography for my listings...they charge about $120 and do an amazing job.
@Willie Cedillo It sort of depends on the original lease that is signed. Some leases already have stated requirements for what will happen when the lease runs out. For example I have seen some clauses that allow tenants to stay once their lease ends on a month to month basis but for a slightly higher rent. Also remember on a month to month lease you are still required to give your tenants proper notification time to move out (usually one month) & it must be given to the tenants in writing.
@Cassie Villela Thank you so much for your response!
@Willie Cedillo , Tenants area always a wild card. You just never know. In addition to that the imagination of a buyer is your best ally. If there's a lease in place every investor will gauge the value of the property off the current numbers of the lease. It's hard to take it seriously when the listing advertises "under market leases"???
And any potential primary residence buyer will judge by the appearance with the rentor in place.
Spring is the perfect time for listing and selling. And that's right when your lease ends. I'd let the tenant leave and spruce up the property to get top dollar from either an investor or homeowner. And then sell. Your timing is actually pretty advantageous.