I currently have a rental townhome with a tenant under lease. I am exploring the option of selling the property as I don't want the landlord responsibility anymore. Since I have a tenant under lease that would limit me to sell to an investor that would keep the lease intact. This seems like a very limited buyer pool. Anyone have any experience with this or any recommendations?
Updated over 3 years ago
I will note that my current tenant plans to stay until she can buy a house. She is not interested in buying a townhome. Also I assume I will receive much less selling to an investor...correct?
@Josh Frye - This is part that most investors don't understand when they buy. Your best option is your current tenant or the next one. Buyer pool is limited to you only but there are others with agent network who can find super motivated investor and sell at premium, unfortunately your share would be very less.
@Josh Frye If you are concerned about selling with a tenant than empty the unit and list it after its vacant. A lot of investors don't want a tenant in place when they buy any way. I prefer to buy empty units. My worst tenant is inherited. You need to weigh the cost of carrying an empty unit until it sells against any price reductions you think trying to sell an occupied property would cost you. RR
A rental property definatly has a much smaller buyer pool and those that would be interested are not likely willing to pay home buyer rates.
Your best option is to wait till the tenants lease is up and sell it vacant.
@Josh Frye It depends on the state. Some places are easier than others to get rid of tenants on transfer of title. If you want to find a buyer, I would start by talking to investors in your area or listing it here on biggerpockets.
Thanks guys. This kind of goes in line with my thoughts that it would be more difficult and I would get less if I try to sell now vs waiting.