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Updated almost 9 years ago on . Most recent reply

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Craig C.
  • Lawton, OK
4
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28
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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

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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
19,542
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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.

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