Are you selling, holding or buying?

Buying & Selling Real Estate
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Are you selling, holding or buying?

Alberto Nikodimov
Property Manager · Orlando, FL · Member since 2020 · 200 posts · 194 votes

Hi Everyone,

I was wondering what is everyone doing right now with the crazy market we are in! What is the right thing to do when deals are so hard to come by? If you have properties that have appreciated, is it a good time to consider cashing out or keep holding on to them?

I am based in Orlando and I am also operating in Miami and both markets are currently on fire. Especially the SFH! We are a property management company in Orlando and Central Florida and most of our investors are currently sitting on cash because they cannot find anything that makes sense. Others are offloading properties and chasing out due to the hot market.

What is your strategy as an investor? If you are a realtor, what are you advising your clients?

Have your criteria for purchasing properties changed due to the new market we are in? If yes, how so?

I have my own opinion but I always like hearing from others in regards to their thoughts and markets!

Thanks for your input!

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
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Originally posted by @Alberto Nikodimov:

I was wondering what is everyone doing right now with the crazy market we are in! What is the right thing to do when deals are so hard to come by? If you have properties that have appreciated, is it a good time to consider cashing out or keep holding on to them?


This will depend largely on which phase of the financial journey one is in.  The sellers market that made deals so hard to come by and corresponding rises in value and rents pushed me into the preservation phase early. 

I have been more of a seller than buyer since 2017, but have purchased easy off-market deals.  My criteria has not changed much, but I was never a 70% minus repairs buyer. If looking actively today, I would expect an effort/reward ratio of about 200:1. Too high for me. I'm a buyer at more like 50:1 or less as an unmotivated preserver. 

I may be more of a seller moving forward.  I just saw a duplex I thought would be a stretch for me at $360k ($395 retail) get listed for $525k. I know this seller. He said it had 2 offers over asking right away.  WTH?  I have a bunch of plexes in that market.  Depending how it plays out, I may be forced to the selling table again. 

What to do if you suddenly realize your assets could be worth 45% more than you thought?  If you're in the preservation (last) phase of your journey,  you evaluate the tax and re--deploymemt options available to you and make hopefully the best decision for you and your family. 

Never be afraid to sell or buy if the right circumstances present themselves. Be willing to pivot. 

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  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    5y

    I find a topic that I think I have something of value to add, I read all the replies, and when I get to the end I find that @Steve Vaughan has already hit on not only my point but a few others I hadn't thought of in a more clear and succinct manner with far better examples!!

     At this point my time would be better spent writing a script that just upvotes all of Steve's posts. 

    1Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    5y

    @Joe Edwards

    Let's say that institutional investors have deal with banks at retail prices for any foreclosures to come due to forbearance or financial hardship. This information is more unknown to most. 

    Low inventory, and low interest rates contributed to the increased demand which drove up housing prices. 

    How about the sellers who took their property off market during coronavirus? Vaccine starting in mid December and should be ramped up in Jan/Feb'21. This would surely bring out sellers who took property off market beginning of coronavirus and new sellers in coming Spring?

    0Reply
  • Scott Raley
    Real Estate Agent · San Jose, CA · Member since 2015 · 84 posts · 50 votes
    5y

    I sold my  rentals in California in  late in 2019 and early 2020 and invested via  1031 exchanges as a general partner in two storage facilities in Florida. My income is double what I was netting in California. I'm always looking to buy to flip but its super competitive here in Silicon Valley. Only chance to make a  profit is to find a deal off market. 

    0Reply
  • E.S. Burrell
    Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
    5y

    Business as usual.... I’m trying to buy but the homes I like are already tenant occupied and I don’t want anyone’s headache. So I’m still waiting until spring to see what happens.

    0Reply
  • Moncy Samuel
    Investor · Suwanee, GA · Member since 2015 · 114 posts · 24 votes
    5y

    @Alberto Nikodimov

    At the End of 2019, I sold one of my single family and 4plex which is in a market that was giving constant headache. Holding onto multi which are good income producers. Prices doubles.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    do all three  simultaneously at all times.. in all markets.
    Podcast Guest on Show #222
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    0Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    I'm "stuck" in sell mode.  For a variety of reasons.  I really desire to buy & hold more but have just seem to have doors wide open with RE sales. 

    I know historically buy and hold has always been preached as a more sound investment compared to flips etc, yet 2020 definitely shifted things towards sales being rewarded with low interest rates and buy and holds somewhat punished with eviction moratoriums etc.  

    0Reply
  • Ayne C.Pro Member
    Rental Property Investor · Tampa, FL · Member since 2018 · 251 posts · 124 votes
    5y

    @Alberto Nikodimov. I'm buying. We'll.... I'm trying to buy. When the deals seem nonexistent the answer is to make more offers.

    1Reply
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