Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

28
Posts
4
Votes
Craig C.
  • Lawton, OK
4
Votes |
28
Posts

Sounds stupid to me!

Craig C.
  • Lawton, OK
Posted

I recently went through some classifieds, to find a tri-plex for sale, at 75% retail, with an incredible cashflow(45%in this case!)  Fully occupied. 

My question?  Why in the heck would anybody sell a property like this?!  

Or for that matter: 

*When you go through classifieds, or you look for a decent deal, and find a couple, why is it a good deal if they are selling it, and especially if/when somebody selling it is also an investor?  Which gives rise to the next question:

*How can you, as an investor sell a rental property and expect anything remotely close to full retail? 

*And why would you sell a tenant occupied property, let alone a fully occupied triplex? 

It makes absolutely no sense to me. 

Most Popular Reply

User Stats

13,762
Posts
19,903
Votes
Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
19,903
Votes |
13,762
Posts
Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
Replied

Here's a common answer for this.

Property cash flow fantastic, but not enough to cover a big capital expense that was out of pocket.  There's a lot of equity in the property, so the Investor access his equity to recover his capital expenditure by selling the property...then takes the profit, and buys a different property that cash flows.

Loading replies...