Trying to sell vacant rental property- suggestions?

Trying to sell vacant rental property- suggestions?

Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes

Hoping for some guidance on trying to sell vacant rental property in blue-collar neighborhood that is listed on MLS with some turn-offs to buyers. This was originally advertised as a rental this winter/spring but got no applicants willing to rent at a price point that makes sense for me in terms of cashflow so I decided to sell. Yes I realize I could drop the price further, however the price point is appealing but the bedroom size is not. Property is a 3/1 SFR in Harford county MD, 1000 sq feet. Turn-offs based on feedback is the bedrooms are all too small and can only fit queen beds with limited bedroom furniture. Also some of them mentioned the neighborhood is not their favorite: next door neighbor doesnt take care of their house appearance. Bathroom and kitchen are fully renovated and brand new grey exterior siding and windows. recently improved curb appeal with some mulching. MLS photos show some staging and look good, but we're approaching 90 DOM without any bites. I currently own the house free and clear. current price, which is already been lowered a couple of times represents about a 1-2k profit after all holding costs, rehab, acquisition. if I drop another 5k, it will be $3k loss. I'm leaning toward continuing to drop the price and get rid of it but worried that price won't be the solution. Is there a way I can toss in limited seller finance or other creative items like lease option to improve the appeal and get more interest? Thanks for your thoughts...

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  • Real Estate Agent · Havre De Grace, MD · Member since 2016 · 22 posts · 2 votes
    9y

    Where is it? What's the rent you're seeking? What's the sale price. Send me a message direct if you prefer.

    Zach

  • Title Representative · Carmen, OK · Member since 2017 · 1 post · 0 votes
    9y

    Well, it is already gray, so I don't see what more you could do to get in tune with the times.

  • Lender · Boulder, CO · Member since 2017 · 8 posts · 4 votes
    9y
    Lease purchase or owner financing is good option in this case. Put a rent to own sign in the yard and see what kind of buyers you can get. Also working with a local mortgage banker would be highly recommend because they have people that just missed qualifying for a mortgage. Those are the tenant buyers you want. You can usually make more on the deal if you can wait because no Realtor commissions and buyer can pay closing costs. Let me know if I can help.
  • Annapolis, MD · Member since 2015 · 132 posts · 52 votes
    9y

    So it sounds like your estimates of the rent and sales price were off.  Did you come up with those amounts or did a realtor?  

    What does your marketing look like for the home as well? You said it's on the MLS, which is great but how are your pictures? Do you only have a few dark pictures or did you have a professional come in and take pictures? Good pictures make a big difference. Also, if you had a zillow video to your listing it will actually boost its ranking in zillows algorithm.

    Seller financing is not a bad idea, will probably attract investors as well as those who have poor credit scores and can't get traditional financing.   

    Are you listing this yourself for sale or through an agent?

  • Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    9y

    I rent a similar 3/1 unit for $1200 a couple of blocks away, but there is a townhouse rental complex nearby this unit that rents for 1100 for similar 3/1 units that appears to have brought down the rent either via proximity to that complex.  comp across the street from mine with lower renovation quality I believe rented for 1150.

    Marketing was agent photographed and lightly staged not full furniture staged. Photos are bright and clear. This is listed on MLS with an agent. They are an experienced agent and very familiar with the neighborhood and the brokerage is based in the town the unit is located.

    I know it's easier to just share the listing, but I'm not prepared post it that at this time.

  • Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
    9y
    Why aren't you "prepared to post" your listing? Just based on that, I personally think you are hiding something that would result in input from the BP community that you are unwilling to accept. Just my honest opinion...
  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Jeff Bridges   I would try to do an owner finance deal and then find a buyer for note.

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