What is it worth?

Question

I have a 5br/4ba 2700sqft house.  It has had a steady renter for the past 4 years (never been vacant).  It rents for $1600/mo and comps somewhere in the ~$275k range.  Would something like this be appealing to investors, and if so, what is it worth?

David T. · Answer

You might get $200k from an Investor based on the existing rental income. The value is too high for a rental, so your best way to sell it for highest price is move out the tenant, clean it up to at least a presentable standard and offer it to the open market at comp rate. Talk to a Realtor, I can recomend a few if you need one.

Mike Mullally · Answer

Thank you for the replies.  I am right at about the sweet spot with my rent in that area.  It rented in one day and has been rented to the same family for the past 3 years.  I imagine they are there to stay and I am not unhappy with the situation.  It was just a way creating more capital to roll into new things.

I will leave it alone, and use different money for my new ventures.  I am excited to start building up a nice portfolio.

Elizabeth Colegrove · Answer

@Mike Mullally

Those numbers are not going to interest "turn key" investors. You might want to check the rental price. Most areas have greatly increased in rental price the last 4 years.

Jon Klaus · Answer

It's probably not going to interest investors at $275K.  Almost all investors demand more income for their dollar.  You are probably better off listing it to sell it retail to an owner occupant.

Mike Mullally · Answer

Actually, thank you for the answer.  It was just something I was considering.  I didnt know if people invest based on the cashflow or what.

Richard C. · Answer

I am not sure how anyone could really answer that based on the information given.  Personally I could never make that work in my area unless I could buy it for $150,000.  But I have no idea where this is, what could be done with it, etc.