Advice on best approach to sell a group of multifamily.
I have 6 duplexes (12 doors) that I want to sell. They are clustered in a small neighborhood (a 2-block cul-de-sac street with two 1-block side cul-de-sac streets), duplexes are all same age, 2 repeating floor plans, very close in size, all require some degree of repair/renovation. The duplexes are all on the main street. The 6 duplexes comprise more than half of all the properties on that street, so we've been able to control, to a degree, the feel and look of the neighborhood (quiet, clean), set the rent rate for other rentals in the neighborhood, and negotiate maintenance and repairs by the number and proximity of properties. Other than two owner-occupied sfh, all other properties in the neighborhood are also rental duplexes.
The neighborhood is in a central area in Austin about 10 mins from downtown; until 5 years ago it was mainly warehouses and non-retail commercial. Since then, major employers have come in, there are new condos, townhouses and a smallish sfh neighborhood, new convenience stores, a handful of trendy restaurants and a new community college annex. No HOA and no restrictions on short-term rentals. At least 2 duplexes in the neighborhood are currently STRs/Midterm, charging around $3,900/ mon, and fully-renovated duplexes rent for $37,500/year/duplex. Property taxes are lower than similar properties in the area.
I understand the value all the above and I know that an investor would do well to buy all 6 properties to take full advantage of the "economy of scale" opportunity, type of property, convenience of proximity and growing location. Of course, I would like to simplify my life and sell them as a group but i also want to get the best $$ for them. There is current duplex listed (not mine) at mid $500s and recently sold duplexes in the high $400s in neighborhood/area.
One realtor proposed selling the properties "auction style" whereby offers are received for 2 days and then sold to highest bidder, but holding a reserve price. Im not convinced. I'd love to hear other ideas and your advice, please.
