What is it worth?

6 Replies

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?

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.

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.

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

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.

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.

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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.