How Much Should I Sell This Property For?

11 Replies

I may have an opportunity to sell one of my rentals and deciding on a price. It is hard to find an exact comp, but units that are 2 bedroom, 1 bath are going from about $150,000 - $250,000. 

Below are the numbers. What would you price the unit at? 

The unit is across the street from the Ferry to NYC, has partial views of NYC and the Bay.

Taxes: $291/month

HOA Fee: $411/month

Rent: $1,600/month - 2 year Lease just signed with great tenant that has been there for 3 years

Originally posted by @Brian M.:

I may have an opportunity to sell one of my rentals and deciding on a price. It is hard to find an exact comp, but units that are 2 bedroom, 1 bath are going from about $150,000 - $250,000. 

Below are the numbers. What would you price the unit at? 

The unit is across the street from the Ferry to NYC, has partial views of NYC and the Bay.

Taxes: $291/month

HOA Fee: $411/month

Rent: $1,600/month - 2 year Lease just signed with great tenant that has been there for 3 years

I would just have a broker in New Jersey do a proper CMA for you.

Do you need a referral in that area? I can have someone reach out and do the CMA for you.

I am just asking from an investor standpoint. I guess my question should have been, what would this unit be worth to you for a pretty hands off investment.

I should also add it is in great shape and won't need any work other than maintenance items for a while.

@Marc Middleton

Random strangers on the internet cannot give you even a remotely accurate idea of what you should sell a property for.  It's VERY location specific, so much so that you can't determine the value based on rents and other numbers.  That same property with the same numbers in Iowa could be worth $100k but in San Fran could be half a million.  Property value is NOT just based on rent, it's mostly based on location due to appreciation and land value in that area.

You need to ask an agent in your area to run comps. Don't worry about the taxes, comp based on square footage 200 up and down only, with similar HOA fees, within the closest location radius possible. Your agent can do this very accurately using their MLS access.

The zip is 07732 so if any investors can give me an idea (based on the numbers I gave) what kind of purchase price would make this a suitable investment for them, please let me know. 

The actual selling price of this unit can vary by 10% or more in this area based on how long one is willing to wait. The comps vary widely and I can do the same work that a realtor could. I am more looking for an answer from an investor of what kind of return they would need buying a unit in the 07732 area code with a stable tenant with two more years on their lease (that counts for something comps won't take into account) and what you would need to purchase the unit for based on just the numbers I have given. 

Thanks

@Max Gradowitz

Eyeballing the deal it is not cash flowing so appreciation is the only play.  Im not familiar with the area but its not north NJ so hard to tell without looking at the inside and amenities etc.  You're looking to sell I'm assuming ? I invest in condos but usually in Hudson county.

Thanks @Jason Lee  and @Edward Verdel I would have been able to get about $157,000 but decided to hold off having a very stable tenant in there with over 2 years left on the lease and only having had the property for about five years.