I have 3 properties in Holly Michigan I'm thinking of selling .
Not sure what to ask for them..?
401 s. Saginaw st, Holly, MI 48442 ( purchased 1994)
A 5 unit building ( 4-1 bed room units, 1-3 bedroom unit, a large garage and a coin laundry, some units tenants pay gas and/ or elect )
I currently trade use of the garage for lawn service at all 3 properties.
12 Mo Rent income $ 34,680.
12 mo Avg water $ 3680
12 months taxes $ 4520
12 mo Avg Consumers gas $ 2240
314, 316,314-1/2,316-1/2 broad st, Holly, MI 48442 ( purchased 2000)
( 4-2 bedroom units and a coin laundry, tenants pay gas and elect)
12 Mo. rent income$ 32,400..
12 mo Avg water $3315
12 months taxes $5082
314 s. Saginaw st, Holly, MI 48442 ( purchased 1994, sold and got back)
( 1-1 bedroom unit and 1-3 bedroom unit, tenants pay gas and elect)
12 Mo. rent income $ 22,164.
12 mo Avg Water $ 1425
12 months taxes $3044
Total of the 3 rent income $ 89,244
Total 1 yr tax $ 12,646
12 mo Utilities$ 10,660.
+ Coin laundry income at broad st and 401 s Saginaw apx $ 1,200 ( needs new machines at 401 s Saginaw so should be more)
Over all Holly has been a good place to invest. its a well run town. The rental inspector is easy to work with. and the units are easy to rent. I keep a sign out all the time and try to keep a list of potential tenants. and I call them when something opens up. All my leases are 1-2 years then month to month. I have Many Long term tenants who pay on-time and will be there for years to come. Having multiple properties has allowed me to keep good tenants and move them to a larger or smaller unit as there needs change.
The reason for selling : Deprecation, I've owned these for so long that i would be better off to buy more expensive properties.
When i sell i would need you to work with me as i do a 1031. I will not do a land contract. ( I need to buy something else on a 1031) may consider a trade.
I've been buying in Madison heights, Pontiac, Keego Harbor . May look at other areas ( Ferndale, Royal oak ect ) These are more convenient for me and my property manager.
May also consider a large multi family. Let me know what you have or if you know someone who has something they want to sell.
@Jeff Weaver , Pricing these is going to be a balance of your patience and desired direction going forward. I understand that you'll be wanting to purchase new property to buy more depreciable basis. That tells me that in a 1031 scenario you could use the proceeds of each one as a downpayment on three larger properties. Or you could sell the three and purchase one significantly larger property.
This is where the timing comes in. If you price for top of the market there will be the risk that your sales don't cluster to meet the 1031 timelines for all (unless you manage to get a contingency for a delayed sale dependant on timing of the other two sales.
If you price so you feel comfortable they will all move at roughly the same time that would be great but sometimes that means more of a haircut than one would like in a seller's market.
A reverse exchange is certainly an option. if you found the right property you could start the reverse before any of the properties sold. Or it could be structured after one or more have sold to make sure you can accommodate all three.
You've actually got quite a few options and still keep the integrity of your 1031s together.