Downsides with selling an older duplex "as-is" in Berkeley, CA?

10 Replies

Hi there,

Soon I'll be downsizing my elderly mother and having her move in with me and want to sell her home. It's an older duplex in northern california that my grandfather owned and made various modifications to way back when. 

My question is regarding whether it is possible, and advisable, to sell a house 'as-is' these days? My mother has health issues and I dont have the time to work on fixing up the house in the various ways it needs in order to be a home someone can move right into after she moves out (the upper unit has been vacant for years but needs a new kitchen, floors redone, etc). Luckily it's not in foreclosure nor does it have any other kinds of financial issues. It's also a pretty large duplex with a very large yard in a prime bay area city.

I'm guessing this kind of home would be best for investors but I'm not sure how I would target investors for the property. Are their agents that work directly with selling to investors?

Thanks for your advice/thoughts!

~Laquel

@Laquel W. You should not try to target any particular segment of the buyer population. List the house as-is with a realtor you like and let them get you the top $ you deserve.

I am heavily invested in the Berkeley market and I can tell you that it is a good time to be a seller. Good luck with the transaction. Investor types will try to buy the property from you off the market. Don't do it. That will only benefit the buyers, most of the times.

you'll have PLENTY of interest.... you'll also get a TON of people trying to lowball you to make some money themselves. If you have a good agent you'll likely see a quick close and not have to do anything.

Originally posted by @Matt K. :

you'll have PLENTY of interest.... you'll also get a TON of people trying to lowball you to make some money themselves. If you have a good agent you'll likely see a quick close and not have to do anything.

 Thanks Matt!

Originally posted by @Xin Jin :

@Laquel W.You should not try to target any particular segment of the buyer population. List the house as-is with a realtor you like and let them get you the top $ you deserve.

I am heavily invested in the Berkeley market and I can tell you that it is a good time to be a seller. Good luck with the transaction. Investor types will try to buy the property from you off the market. Don't do it. That will only benefit the buyers, most of the times.

Thanks Xin Jin! Really appreciate the advice!

@Laquel W. I would seriously recommend that you look very closely at the property as you maybe sitting on a revenue stream that could make taking care of your mother easier.  Don't go advertising the property or you will get sharks circling the waters and they will be offering you solutions that only benefit them. There is probably a large amount of untapped equity in the property at many people would want to tap.

Although you might not feel like you have the time to do what needs to happen to get the house ready for tenants,  keep in mind the efforts you put in right now could have benefits for decades to come.

Get the upper unit fixed up while you are working on getting your mothers situation settled and then get her unit completed.  Assuming that the general up keep of the building has been done and that the upper unit is habitable, the renovations should not take that long or cost that much.

You are sitting on the goose that lays the golden eggs don't kill it!

I agree.... You have a paid off duplex.  take out a heloc on it, do the work, and cash rent checks forever..... low property taxes.... all the goodies.

@Laquel W. I have rentals in the Fruitvale area and also in North Oakland. There is a great network of local "buy and hold" investors that you can tap for advice and guidance. I am not sure what your unit make up is, but in the right neighborhoods you could be pulling in several thousand dollars a month and you could also pull out a a large sum of money through a cash out refi or a HELOC as @Carson Wilcox has suggested.  

Even though you maybe tempted by selling the property for a large windfall.  Keep in mind that you will be hit with taxes.  By using a financing method to get cash out, the money will be essentially tax free and there might be added tax benefits!

It may seem like a big task, especially for somebody that has never done it.  But it can be managed and made extremely profitable for you, even in a part time basis.  The best part of your situation is that you will have 2 units that can go directly to market rents!  That is huge in a rent controlled market like Oakland.

I am not an agent, a whole seller, contractor or sell any services.  I am just an investor who believes in Oakland and I would hate for you to make a decision without knowing all of your options.  Feel free to reach out off line if you want to chat further.

Hi Laquel,

I agree with others that you may find holding onto the property is a better deal in the long run than selling.  Rents are very high and apartments are always in  short supply in Berkeley.  However, if you decide to sell you can generally get very high amounts for fixers.  I work with many investors that would pay good money, but honestly, the best money is going to be gotten on the open market.  If you'd like me to run numbers of various strategies, I'm happy to do so.

Best,

Leslie Bandy

Hi!

Agree with the members opinions. I’d be happy to do an off market purchase if interested.

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