Should I leave an unit vacant when selling?

Question

I am thinking of selling a duplex that I currently own in West Michigan and was wondering if it's a good idea to wait until April when the downstairs tenants lease is up and the move out?  Or would a buyer prefer to have the property fully rented and bringing in income right away? The upstairs tenant is good reliable long-term tenant with no plans of ever moving out.

Charles Kao · Answer

@Jeff Jansen

Renovate the vacant unit and sell that way.  Owner occupants always pay top dollar so they can occupy.

Account Closed · Answer

@Jeff Jansen makes showings way easier that’s for sure

Mitchell Luban · Answer

@Jeff Jansen I usually advise my clients to leave a unit empty. It both allows for us to accommodate showings and like mentioned above it allows for owner occupants to make an offer with FHA financing. These buyers are generally willing to pay more than your typical investor. The property has to be in somewhat decent shape in order for it to pass some basic FHA guidelines however.

Brianne Leichliter · Answer

@Jeff Jansen this is hit or miss. If you’re in an area where it’s a seller’s market and it will be off the market quickly, I would say leave it vacant. Definitely more advantageous to the new buyer and also allows and owner occupant. Makes showings a breeze as well.

If you think it may sit on the market for a while, make sure you have enough reserves in place to hold you until you sell or place a tenant to offset.

Darryl Matthews · Answer

@Jeff Jansen

Generally buyers don't want to inherit tenant especially if rents can be improved

Todd Bowen · Answer

@Jeff Jansen I like to purchase properties that are vacant. This way, we can go in and do any capital improvements, deferred maintenance, and “tenant proof” the units. In my experience, when you buy occupied properties, you never know what you’re getting. Example, we bought a 3-unit a few years ago fully occupied and within two months had to evict two of the three tenants. Where is your duplex?

Jason D. · Answer

@Jeff Jansen hard to say for sure, I work with some investors who’d prefer the full vacancy and CF from the start. That said, you could have a larger buyer pool w/ a vacant unit and capture those who are looking to owner occupy and will typically pay a little more than an investor.

Patrick M Gordon · Answer

Hello Jeff,

Do you mind telling me a bit more about your duplex. I may be interested in located in spring lake, MI

Jeff Jansen · Answer

It's in Wayland, right in town.

Should I leave an unit vacant when selling?

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