I have a duplex for sale and can't understand why it's not selling. We've had a couple offers fall through. I understand the condition, but the price is RIGHT. If you guys have any thoughts, I'd love to hear them.
1bd 1bth each unit certainly makes things more difficult. Currently rented? Condition of the mechanicals? Roof and windows ok?
@Jeremy Barth What feedback are you getting? 1/1 duplexes are not in high demand, and the condition looks reasonable but not great. With very little info to go off of, I can only speculate that you need to find the right person for this place. The reality is that even though its cheap it still takes capital and I for one would rather put my capital other places with more upside. This property is very limited and likely attracts people who need the low price to make a deal work. Just my guess.
I agree with @Oscar Brooks in regards to the 1 bd and 1bth being harder to sell. I don't know the area but Is it near a hip, happening part of town with a good percentage of millennials or it it more of a family focused residential area? It is also generally harder to sell in December. My two cents...
The words "projected rent" might be part of it. Can you get it rented? If those numbers are solid, perhaps that would make a difference.
Wouldn’t buy in that location. Size is just too small
I've actually been into your property with a couple clients. The MAIN concerns that I have heard are the size of the units AND the busyness of the street. What are the main pieces of feedback that you are getting?
Wait a second, you are asking for less than 2005??????...
Wow, that is hard to imagine!!!!
I would imagine 2017 would be at least 2x, if not 3x....
Without seeing it or vetting the rents I use a general rule for less desirable neighborhoods of monthly rent times (.8) then add two zeros. For suburban it is generally (1.1). It’s obviously not the only method we use and doesn’t apply to all properties, but it is a general guide when we are evaluating new properties for investors. I give this example because this is why your property would get filtered out if I were looking. Your property may be worth the price, but my guess is the “projected” rent and price is limiting the investors looking at it.
Overpriced. It's a 1 bed each unit, so not desireable for an owner occupant. You're selling to an investor, so I would think $130k-$140k max. Can you turn it into a nice looking single family without much money? You may be able to get $200k if you turn it into a 3 bedroom.
Agree with all of the above. When I checked it out I just couldn’t make the numbers work. There is some money that needs to go into this property to attract the rights tenants and that was a deal breaker. If it was turn-key, I could see possibly a owner occupied situation might work for someone.
@Todd Dexheimer makes a good point. If you could work this into a single family, there would be better chance at selling.
I'm from Minneapolis. I agree with the others. The place is too far from the U of M to attract students easily, and one-bedrooms are not super popular. It looks like it was a SF before it was a duplex. Maybe it could be switched back? That's a great area for SFH.
I don't know enough about the neighborhood, but it's close enough to be where it's not a no-brainer good to great neighborhood.
1 bed / 1 bath... that's scary for any single person to rent not knowing who you share that house with.
I'll say this as well which no one else has said, but it lacks curb appeal. It's not a cute / attractive house at all, so as a duplex it looks even worse.
If it were mine, I'd turn it back to a single family.
I'd upgrade the exterior. Get the various wires off the roof. That's a horrible install by the satellite dish company. Maybe straighten out the porch.
Clean up the bushes around the house, and the lawn wasn't cared for well as evidence by green weeds and no lawn.
Inside looks nice enough, but outside of the house to me just gives me bad feelings.
Just look at the house next door to yours. That one looks nice. I'd buy that one.
Looking at yours, you wonder if the siding is asbestos. You wonder how you have to make exterior repairs. The exterior look of the windows scares you off.
It's all about the exterior I'm afraid.
Wow, you guys are awesome! Thanks for all the feedback everyone. I really appreciate it.
Hey man after looking at the listing I see a few things that are not helping you sell it other than the price and 1 bed units.
- Your showing requirements are difficult. The limited times you can see it and requirements to see the second unit are tough.
- Your buyers agent compensation is low. 2.5% will scare off some agents and they won't go out of their way to show this. Normal is 2.7% or 3%. I know this sounds ridiculous but it's just a reality.
- Not accepting FHA financing is making this less appealing to people in this price range who are likely to use this type of financing.