Advice on Selling Portfolio

Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes

I am currently liquidating my portfolio, which formerly held my rentals. I was able to package three of them in one deal, which ended up breaking even/not profitable (A little bummed on this one since I think the buyer (an investor) won the better side of the deal in terms of gaining equity on the houses). I have four more that I need to liquidate with a goal of having them all sold by the end of this year. They have been on the market for about three months now and I am working with my realtor to get them sold sooner.

The remaining properties have loans on them with one being free and clear and vacant, two being vacant with mortgages, and one is currently rented with a monthly mortgage payment due. I am trying to see if it makes financial and/or market sense to rehab them and possibly rent them out or just leave them as-is. I am leaning towards as-is due to the lack of funds in my current situation. Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. At first, I wanted to just save it to build up enough investment funds to move to my next deal, but open to suggestions.

Any advice on steps to take to move in the right direction if you were in my position is greatly appreciated. Would like to hear from any investors that have been in this type of situation.

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Kevin Sobilo

Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes

@Arron Paulino, its hard to give detailed advice, but here are a few thoughts:

1. How did you end up in this situation? It sounds like you started investing, but didn't follow all the way through. You have mortgaged properties sitting vacant and properties in need to rehab. So, it does not sound like to maximized the potential with what you already have.

2. Maybe you already own your next deal! Selling is expensive! Buying is expensive! Mortgage rates are higher than they were! So, a deal you have in your portfolio might be more lucrative when you consider those facts than something else you could buy right now!

So, I would start by analyzing properties I own as potential "deals". As I said in #1, it does not sound like they are maximized.

3. There is probably a reason why you feel you want to sell these. I suggest examining that carefully. Since these deals have not gone to plan for you so far, there should be a LOT you could learn from that experience.

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Kevin Sobilo
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
1y
@Arron Paulino, its hard to give detailed advice, but here are a few thoughts:
1. How did you end up in this situation? It sounds like you started investing, but didn't follow all the way through. You have mortgaged properties sitting vacant and properties in need to rehab. So, it does not sound like to maximized the potential with what you already have.
2. Maybe you already own your next deal! Selling is expensive! Buying is expensive! Mortgage rates are higher than they were! So, a deal you have in your portfolio might be more lucrative when you consider those facts than something else you could buy right now!
So, I would start by analyzing properties I own as potential "deals". As I said in #1, it does not sound like they are maximized.
3. There is probably a reason why you feel you want to sell these. I suggest examining that carefully. Since these deals have not gone to plan for you so far, there should be a LOT you could learn from that experience.
5 Reply
Audrey Scott
Flipper/Rehabber · Member since 2024 · 27 posts · 12 votes
1y
Be aware of the current market trends in your area, which can influence selling times and prices.
0 Reply
Scoop Schneider
Investor · pensacola fl · Member since 2023 · 57 posts · 12 votes
1y
where are these properties
2 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
@Arron Paulino Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. That sentence sums it up. My guess is these are properties in lower tier neighborhoods. Why else are you breaking even when there was purportedly 20%-25% equity in these when you refinanced to complete the BRRRR method? I am arriving at this conclusion because the appraisals relied upon for the BRRRR method in these lower tier neighborhoods rarely equate to actual results in an arms length transaction.

You say the investor got the better of you in terms of gaining equity but the equity you thought you had was only paper equity and not equity that would be realized. What you experienced is the norm, so don't feel as if the buyer got the better of you. After experiencing first hand how difficult it is to handle lower tier neighborhood sales, why even consider renovating the remaining properties? Move on, cut your losses, learn from it and invest in better markets next time. Hopefully you at least built some good industry relationships while going through this exercise. I made the same mistake with my first purchase 12 years ago when I bought a duplex in a C/D Philadelphia neighborhood.

This can be a good lesson for others who complete BRRRR transactions in lower tier neighborhoods and believe they are sitting on equity they can realize when they go to sell their properties. Unfortunately you will rarely see it materialize as Arron just learned. I am sure many would consider other investment strategies besides continually recycling their capital collecting homes that are propped up with appraised values that are not attainable if the properties were marketed for sale. Unfortunately this is not the narrative the coaches, mentors and gurus share when they push you towards this strategy.

[email protected]
3 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Kevin Sobilo:

@Arron Paulino, its hard to give detailed advice, but here are a few thoughts:
1. How did you end up in this situation? It sounds like you started investing, but didn't follow all the way through. You have mortgaged properties sitting vacant and properties in need to rehab. So, it does not sound like to maximized the potential with what you already have.
2. Maybe you already own your next deal! Selling is expensive! Buying is expensive! Mortgage rates are higher than they were! So, a deal you have in your portfolio might be more lucrative when you consider those facts than something else you could buy right now!
So, I would start by analyzing properties I own as potential "deals". As I said in #1, it does not sound like they are maximized.
3. There is probably a reason why you feel you want to sell these. I suggest examining that carefully. Since these deals have not gone to plan for you so far, there should be a LOT you could learn from that experience.

I appreciate your reply.
1. I ended up in this situation after doing the BRRRR multiple times and then realizing that I needed to be more liquid and may have overextended myself in the process. I did start investing with the intention of building my rental portfolio, but I started to see that overall I was not cashflowing as best as I could. I am essentially looking to start over and with more caution in getting better investments. How do you suggest I proceed?
2. I think I do and don't get what you mean. How can I maximize what I currently have in my portfolio to get the most out of it? I do owe a monthly mortgage payment on a couple of them and have one that is free and clear. Only one of them was BRRRR with a lower interest rate and cashflow positive. Should I look at these properties as if I were the buyer?
3. My reasoning for selling these properties is to move on to better opportunities and locations. At first, it did look good on paper when I ran the numbers, but now owning them for a couple of years it didn't pan out how I imagined. Definitely a learning experience and something I want to let other investors know what to do and not to do.
2 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Audrey Scott:

Be aware of the current market trends in your area, which can influence selling times and prices.

In your opinion, do you think we are in a buyer's market or seller's market right now?
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Scoop Schneider:

where are these properties

These properties are located in Memphis, TN.
1 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Stuart Udis:

@Arron Paulino Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. That sentence sums it up. My guess is these are properties in lower tier neighborhoods. Why else are you breaking even when there was purportedly 20%-25% equity in these when you refinanced to complete the BRRRR method? I am arriving at this conclusion because the appraisals relied upon for the BRRRR method in these lower tier neighborhoods rarely equate to actual results in an arms length transaction.

You say the investor got the better of you in terms of gaining equity but the equity you thought you had was only paper equity and not equity that would be realized. What you experienced is the norm, so don't feel as if the buyer got the better of you. After experiencing first hand how difficult it is to handle lower tier neighborhood sales, why even consider renovating the remaining properties? Move on, cut your losses, learn from it and invest in better markets next time. Hopefully you at least built some good industry relationships while going through this exercise. I made the same mistake with my first purchase 12 years ago when I bought a duplex in a C/D Philadelphia neighborhood.

This can be a good lesson for others who complete BRRRR transactions in lower tier neighborhoods and believe they are sitting on equity they can realize when they go to sell their properties. Unfortunately you will rarely see it materialize as Arron just learned. I am sure many would consider other investment strategies besides continually recycling their capital collecting homes that are propped up with appraised values that are not attainable if the properties were marketed for sale. Unfortunately this is not the narrative the coaches, mentors and gurus share when they push you towards this strategy.

I appreciate your detailed response. These are in lower-tier neighborhoods that seemed like good deals when I first got the deal, but now realizing that I could've done better. I think I do want to get better at calculating ARV and understanding what appraisers really look into when calculating how this equity is acquired.
Thanks for the reassurance. At this point, I am just selling them as-is and cutting my losses so I can move on. Really taking this as a learning lesson on what I should do going forward. I'd like to learn more about what happened in your experience and how you were able to overcome this challenge in order to get better. What would you do in my situation if your goal was to get this sold, hopefully, by the end of the year?
Yeah, it really has been a tough scenario, and I want to share it with those that are considering the BRRRR method. It can really look good on paper and in my case being a couple of years down the road, it may not really work out how you envisioned when the property was first acquired especially in a lower-tier neighborhood. It is better to get the right one rather than multiple mediocre ones to try to build your portfolio. I did get suckered into the narrative of those who say to try this method and am now realizing the sour end of the situation looking to recover in the future for the better.
3 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
@Arron Paulino I've posted on this many times over the last year and my advice normally falls on deaf ears. Most haven't taken their properties acquired through the BRRRR method full cycle and gone through the sale process you are experiencing. I am not anti-BRRRR, or believe its a bad strategy. The problem most encounter is placing too great of an emphasis on the return of capital at the end of the renovation process. In fact most new BRRRR investors prioritize whether they can receive 100% of their capital back through a refinance over all other deal metrics and being laser focused on that particular objective often leads to investing in the lowest tier neighborhood where it is easier to complete the BRRRR process.

The reason why you're struggling is quite simple, all you have to do is ask yourself who the buyer is if and when you sell. As you've found out based on the portfolio sale, its another investor. Makes sense, why would an investor like yourself pay the same amount as you when there's a ton of inventory in a low barrier of entry neighborhood. They can simply replicate exactly what you did in the first place. This is the part most miss.

If you are going to complete the BRRRR method in a lower tier neighborhood, select a neighborhood with the fundamentals that indicate the neighborhood will transition to a neighborhood where home ownership will become more prevalent. When that shift occurs you will experience appreciation that can actually be realized in a sale because you are no longer limited to selling your real estate to other investors. These neighborhoods exist and aren't difficult to spot but most ignore the characteristics because they are hyper focused on whether they can achieve their BRRRR refinance and ignore everything else.

Most begin by purchasing lower tier real estate because the price points align with capabilities. There's nothing wrong with that and It's often impossible to jump from the lower tier properties to more expensive real estate after the first round trip because most fail to make a profit. Don't be afraid to purchase the lower tier real estate the second go around if you are focused on the correct fundamentals. Perhaps you have to leave some of your money in the deal, but if you hit it correct and the neighborhood appreciates you will do quite well. Investors ask how do I scale....well that's how you scale. You acquire real estate that has meaningful appreciation that can be realized, not merely buying a bunch of doors in stagnant markets with appraised equity that's can't be realized when the property is sold.
[email protected]
3 Reply
Audrey Scott
Flipper/Rehabber · Member since 2024 · 27 posts · 12 votes
1y
Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.
0 Reply
Cory M.
New to Real Estate · Member since 2024 · 30 posts · 30 votes
1y
Hey Arron, I'm sorry for your negative experience! Can I ask if you've been using a property manager and what circumstances led to the properties being mostly vacant? One way to turn these properties around might just be to get them tenanted with a good manager in place.
0 Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.

Perhaps in some markets but you can't apply this thought process to all, especially not the lower tier neighborhoods that have zero barriers and seemingly unlimited inventory. Lower tier neighborhoods are almost always buyer markets. That's exactly what @Arron Paulino is facing.
I will add, kudos for Arron for coming forward with his story and experience. It's usually those seeking proactive advice or to share accomplishments who post (nothing wrong with either). There's a lot of investors who are in Arron's shoes and don't share the struggles they face while selling their lower tier inventory. Hopefully this gets others who review these forums to reassess their portfolios and formulate more realistic disposition expectations. Unfortunately most have made lifestyle changes relying on checks that will never be cashed but can't fault the inexperienced investors with the amount of materials online, social media etc. where coaches, mentors and gurus share the ease in which they generated massive wealth in these neighborhoods. The wealth part is correct, but not from their reals estate, rather through selling education.
[email protected]
2 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Investing in Memphis tells me almost everything I needed to know.
I don't blame you for selling. I push back against the dogmatic belief that because it didn't work for me this time, it's a failure. My recommendation would be consolidation not liquidation.
Tap out of Memphis, get your 80c on the dollar back if you can. Re-invest with more of a reserve in a better market, and understand you may not have the quantity or "doors" you are dreaming on your vision board. You'll have better quality assets, and more reserves. This level of confidence is derived from conviction and discipline, and that's how you invest. Not like a yo-yo.
3 Reply
Jordan RayBusiness Member
Real Estate Agent · Memphis, TN · Member since 2023 · 630 posts · 328 votes
1y
Quote from @Arron Paulino:

I am currently liquidating my portfolio, which formerly held my rentals. I was able to package three of them in one deal, which ended up breaking even/not profitable (A little bummed on this one since I think the buyer (an investor) won the better side of the deal in terms of gaining equity on the houses). I have four more that I need to liquidate with a goal of having them all sold by the end of this year. They have been on the market for about three months now and I am working with my realtor to get them sold sooner.
The remaining properties have loans on them with one being free and clear and vacant, two being vacant with mortgages, and one is currently rented with a monthly mortgage payment due. I am trying to see if it makes financial and/or market sense to rehab them and possibly rent them out or just leave them as-is. I am leaning towards as-is due to the lack of funds in my current situation. Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. At first, I wanted to just save it to build up enough investment funds to move to my next deal, but open to suggestions.
Any advice on steps to take to move in the right direction if you were in my position is greatly appreciated. Would like to hear from any investors that have been in this type of situation.

Hey Arron, these are the questions where you should be able to dial up your realtor and ask him/her and get a professional response with a plan of action.. If this is not the case, you might need to look into finding another agent.
[email protected]662-642-1458
Jordan Ray - eXp Realty5112 Reviews
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1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
1y
Why are you liquidating?!
0 Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
1y
Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.
I’m not so sure that we are in a sellers market 100%. We got contacted yesterday by a realtor that cannot sell her client’s property. The seller owes more than its worth, since he bought the property at the peak of the market. The realtor was asking us if we would be willing to buy it Sub2. Whereas it is a higher priced house with no equity we will probably pass, but that is just an example of how the market has changed.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Joe S.:

Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.
I’m not so sure that we are in a sellers market 100%. We got contacted yesterday by a realtor that cannot sell her client’s property. The seller owes more than its worth, since he bought the property at the peak of the market. The realtor was asking us if we would be willing to buy it Sub2. Whereas it is a higher priced house with no equity we will probably pass, but that is just an example of how the market has changed.

We're in a stagnant market and illiquid market. Seller's aren't conceding to list below their original purchase price, or too much lower than it. Realtors aren't getting in front of price action because of recency bias. And buyers simply cannot afford to add to their DTI due to the lack of affordability and looming employment issues over our head.

No one will sell, unless they are forced to. And no one will buy unless they are forced to AND qualify. It's really a no man's market, the first move will be the indicator.

The long-term treasuries are screaming higher rates and inflation being heavily persistent, which usually means underlying house values will go up but I don't think we see that if wages aren't supported in the short term. A second shockwave to housing cannot be supported unless we dip below 3.7% unemployment and the median income: house price gets back closer to 6.33 or sub.

I think the rates actually show how it'll play out-- a near term dip, a long term buy. We just never truly know what's actually unraveling under the surface that could disrupt this.
2 Reply
Audrey Scott
Flipper/Rehabber · Member since 2024 · 27 posts · 12 votes
1y
Considering the current market dynamics, it's crucial to evaluate the long-term potential of a property and its potential for cash flow and appreciation.
1 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Stuart Udis:

@Arron Paulino I've posted on this many times over the last year and my advice normally falls on deaf ears. Most haven't taken their properties acquired through the BRRRR method full cycle and gone through the sale process you are experiencing. I am not anti-BRRRR, or believe its a bad strategy. The problem most encounter is placing too great of an emphasis on the return of capital at the end of the renovation process. In fact most new BRRRR investors prioritize whether they can receive 100% of their capital back through a refinance over all other deal metrics and being laser focused on that particular objective often leads to investing in the lowest tier neighborhood where it is easier to complete the BRRRR process.

The reason why you're struggling is quite simple, all you have to do is ask yourself who the buyer is if and when you sell. As you've found out based on the portfolio sale, its another investor. Makes sense, why would an investor like yourself pay the same amount as you when there's a ton of inventory in a low barrier of entry neighborhood. They can simply replicate exactly what you did in the first place. This is the part most miss.

If you are going to complete the BRRRR method in a lower tier neighborhood, select a neighborhood with the fundamentals that indicate the neighborhood will transition to a neighborhood where home ownership will become more prevalent. When that shift occurs you will experience appreciation that can actually be realized in a sale because you are no longer limited to selling your real estate to other investors. These neighborhoods exist and aren't difficult to spot but most ignore the characteristics because they are hyper focused on whether they can achieve their BRRRR refinance and ignore everything else.

Most begin by purchasing lower tier real estate because the price points align with capabilities. There's nothing wrong with that and It's often impossible to jump from the lower tier properties to more expensive real estate after the first round trip because most fail to make a profit. Don't be afraid to purchase the lower tier real estate the second go around if you are focused on the correct fundamentals. Perhaps you have to leave some of your money in the deal, but if you hit it correct and the neighborhood appreciates you will do quite well. Investors ask how do I scale....well that's how you scale. You acquire real estate that has meaningful appreciation that can be realized, not merely buying a bunch of doors in stagnant markets with appraised equity that's can't be realized when the property is sold.

Your advice is very sound and makes sense. In my case, I am encountering this problem and did not effectively perform the BRRRR as best as I could have. I was so locked in on the cashout refinance portion of the BRRRR and kind of brushed off the part of what if I do actually have to sell, which I am in now. The lower-tier neighborhood entry was easier but then came the risk of needing to sell if it didn't perform.
I agree. I think the buyer has to be another investor willing to pick up where I left off. I was able to get interested buyers (investors) under contract, but a couple ended up backing out either due to the appraisal contingency, inspection, or lack of funds which are all common reasons. It is tough to go through the whiffs on these contracts, but I am understanding this is part of the process and need to really get my emotions out of it.
You are really hitting the nail on the head. I'm really kicking myself on being obsessed with the cashout and blinded by all of the other factors that come with the deal. I think once I get my footing again I'll do more research on better locations that appreciate and hold onto that appreciation with future growth.
The appraised equity really is putting me out and stuck with settling for what the going rate of the current market is. I am definitely happy I at least got started in my real estate investing journey and am taking away knowledge I would have not had if I just stumbled with the what-ifs. It is the downside of investing right now for me but know I'll be able to pick it up once I focus more on the correct fundamentals.
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.

That is what I am thinking too. I am in the process of selling all of my current properties, but am facing the hardship of getting willing buyers/investors looking to get into a lower-tier neighborhood. I did have okay rental income when they were all occupied but definitely could have done better.
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Cory M.:

Hey Arron, I'm sorry for your negative experience! Can I ask if you've been using a property manager and what circumstances led to the properties being mostly vacant? One way to turn these properties around might just be to get them tenanted with a good manager in place.

Hey Cory,
Thanks for the comfort! I have been using a property management company to manage these properties, but as many would agree, that you always have to still manage your manager. I would say the type of neighborhood it was in was questionable, although when I ran the numbers, it looked good at first. My property manager was diligent with picking the right tenant, which I appreciated, but that comes with really narrowing down a pool of applicants that would have been okay in the short term.
I am trying to decide what is best right now and getting them rented out would make sense, but my problem is the lack of funds I currently am facing to rehab them to get them back to rent-ready condition and the monthly mortgage really hindering my ability to save up for these rehab funds. That is why I am currently trying to sell them as-is.
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @V.G Jason:

Investing in Memphis tells me almost everything I needed to know.
I don't blame you for selling. I push back against the dogmatic belief that because it didn't work for me this time, it's a failure. My recommendation would be consolidation not liquidation.
Tap out of Memphis, get your 80c on the dollar back if you can. Re-invest with more of a reserve in a better market, and understand you may not have the quantity or "doors" you are dreaming on your vision board. You'll have better quality assets, and more reserves. This level of confidence is derived from conviction and discipline, and that's how you invest. Not like a yo-yo.

I'm glad we're getting straight to the point. It's been a struggle.
I'm definitely not giving up on real estate investing and just need to clean house for a better result. Do you mind elaborating on the consolidation versus liquidation approach? I currently have the four properties in Memphis on the market and it's probably been about 3 months since they have been listed. Currently, I don't really have wiggle room in my budget to rehab these properties to hold better value on the market, have mortgages on 3/4 of them, and 1/4 is currently rented. Any advice?
Ditto on tapping out. Really just looking to take my L and do better on the next. Trying to get back to the level I was at when I first started my journey with a good chunk of savings and better reserves with the knowledge I have acquired to step into the right situations. For sure looking more for quality over quantity. This up-and-down journey takes a lot of grit.
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Jordan Ray:

Quote from @Arron Paulino:

I am currently liquidating my portfolio, which formerly held my rentals. I was able to package three of them in one deal, which ended up breaking even/not profitable (A little bummed on this one since I think the buyer (an investor) won the better side of the deal in terms of gaining equity on the houses). I have four more that I need to liquidate with a goal of having them all sold by the end of this year. They have been on the market for about three months now and I am working with my realtor to get them sold sooner.
The remaining properties have loans on them with one being free and clear and vacant, two being vacant with mortgages, and one is currently rented with a monthly mortgage payment due. I am trying to see if it makes financial and/or market sense to rehab them and possibly rent them out or just leave them as-is. I am leaning towards as-is due to the lack of funds in my current situation. Once sold, my goal is to have these mortgages paid off from the BRRRR method that I did and move on to different investing opportunities. At first, I wanted to just save it to build up enough investment funds to move to my next deal, but open to suggestions.
Any advice on steps to take to move in the right direction if you were in my position is greatly appreciated. Would like to hear from any investors that have been in this type of situation.

Hey Arron, these are the questions where you should be able to dial up your realtor and ask him/her and get a professional response with a plan of action.. If this is not the case, you might need to look into finding another agent.

Hey Jordan,
Cool to hear from someone from Memphis about my properties in Memphis! I've had a chat with my realtor and really going over a game plan on how to tackle these properties. We came up with if it made financial sense for me to just have these rented out, but in my case, it would require funds that I don't have, and do not feel comfortable taking out another rehab loan on top of the already existing mortgage to keep the property. Also, we are attempting to sell them as-is to a willing buyer. It has been about three months now. I don't think it has to do with being stuck on the market, but rather I was under contract with a couple of interested buyers, but they backed out for various reasons when it came time to close the property, which was a bummer for me feeling confident we could have closed. I'll give it another month and see where we stand. Maybe if they do not see any movement, you may have another client coming your way.
1 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Bud Gaffney:

Why are you liquidating?!

These properties just haven't been cutting it and exploring new ventures. My income versus expenses are lob-sided with me breaking even or losing money monthly so it just isn't making sense to hold these. Thoughts on how you would improve the situation?
0 Reply
Arron Paulino
OP
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
1y
Quote from @Joe S.:

Quote from @Audrey Scott:

Given the recent market trends, I'd say we're currently in a seller's market. Strong demand and limited inventory are driving prices up.
I’m not so sure that we are in a sellers market 100%. We got contacted yesterday by a realtor that cannot sell her client’s property. The seller owes more than its worth, since he bought the property at the peak of the market. The realtor was asking us if we would be willing to buy it Sub2. Whereas it is a higher priced house with no equity we will probably pass, but that is just an example of how the market has changed.

I am leaning toward this reply. I did have a buyer try to purchase my property but I would have to do seller financing and with my current mortgage on the home, it proved to be difficult, and would much rather do a cash sale to avoid more paperwork as well as still being connected to the property based on the terms set.
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