Renovated house with extra lot and workshop deal or no deal ?

4 Replies

I have a listing that I have been trying to sell for 3 months now in Kissimmee , Fl . The seller and I think it's a great investment for someone but we haven't had many interests . Here are the details : completely renovated single family 3/2 home a little over 1400 sf of living space . Property is located on a spring lake and comes with a large corner lot that can be built for additional rental , a separate 1200sf workshop or 4 car garage which can also be converted into another house if needed . This is all on 7/10 acre on a beautiful lake front and lake view . Community has no HOA and taxes are low , it's also on a well and septic so you only pay for electricity which is low. It can easily be rented because it's close to shops and walking distance to Home Depot , it's also walking distance to future Kissimmee sun rail . The asking price has been reduced from $250K to $195K but I don't think buyer see the potential . What do you all think ? Any advice on how I can market his to investors ? Thanks

@Joselyne Muszynski

what are the rental rates like in the area, if the ratio of rent/purchase price is poor that could explain the lack of investor interest?

also ... do you actually use the word renovated in your listing? There is a lot of REI material (online and courses) that insist that people don't want to live in 'renovated' space ... because it makes them think that underneath that good-looking kitchen or bathroom, there's a really awful kitchen or bathroom hiding (or at the very least, it was recently a wreck). It's better to talk about how good it looks, or how homey it is, because that evokes a more positive emotional response.

Also, if you're listing on the MLS, you don't need to talk about the fact that the garage can be converted to another apartment in the listing, if you describe the garage sufficiently, investors will know that it could be an apartment ... and talking about work that needs done distracts you john and jane doe buyers, because they don't want to buy a place that needs work, they just want to buy a place and move in that night.

EDIT: Robyn Thompson is the person from whom I heard about using 'renovated' in listings, wanted to give credit where credit is due.

Thanks Jeremy Pace ! Great advice and I think that makes since . The rentals in the area are about $1000/month so if you count the house ONLY it doesn't make sense right now but that's not what they are selling . They are selling the trio 

If you're marketing it to investors, include the cash flow #'s in the listing.

@Joselyne Muszynski

I can tell you right now that $1000 in rent won't even cover PITI (principal, interest, taxes, and insurance) on a $195k purchase that's financed any which way ... so that pretty much cuts investors out completely.

I think your best best is going to be drilling in on the owner-occupied home buyer types that would love a huge workshop on a large tract on land on the lake shore.

Is there a considerable inventory of similar homes for sale in the area?

EDIT: please articulate the trio that they are selling, thanks!

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