Time to Sell? Swansea SFH

Time to Sell? Swansea SFH

Rental Property Investor · Evergreen, CO · Member since 2018 · 15 posts · 5 votes

I am looking for advice on how to sell a property without making the tenant move out for a rehab. I’d like to sell it as is with a $25k price concession for rehab needs. Is that something that happens? How and where do I list it? I’d like the tenants to be able to stay until a new owner takes over.

I own a ~1,015 sq ft, 3/1.5, single-family home with 1-car garage in Swansea. The backyard is big enough for an ADU with access from the alley. It is mechanically sound with new roof and siding in 2017. The tenants have been in place for about 12 years, so it does have wear and tear. They are month-to-month and pay below market rate.
I would prefer to sell it in its current condition and estimate that a diy remodel would top out at $15k. It needs new carpet, everything needs to be painted, the bathtub needs to be reglazed, and some of the outlets are still 2-prong. That would get it rental-ready. To get it homeowner ready would probably be another $8k for some kitchen updates.

A very similar house down the street sold for $455k in August. I would like to offer mine for $395k as a private sale. I am happy to consider listing with a realtor, but the price would have to increase to accommodate commissions.

I’m open to any and all advice from the community. Thanks so much.

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John WilliamsBusiness Member
Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
1y

A tenant-occupied property, especially one that needs work, is always more difficult to sell (whether you use a realtor or now). I would start by setting expectations that you will likely not be able to net as much as you would if the property were vacant and turnkey. 

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  • John WilliamsBusiness Member
    Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
    1y

    A tenant-occupied property, especially one that needs work, is always more difficult to sell (whether you use a realtor or now). I would start by setting expectations that you will likely not be able to net as much as you would if the property were vacant and turnkey. 

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  • Rental Property Investor · Evergreen, CO · Member since 2018 · 15 posts · 5 votes
    1y

    @John Williams Thanks for the insight, that’s helpful. 

  • Real Estate Agent · Denver CO · Member since 2019 · 210 posts · 333 votes
    1y

    I think you can sell with a tenant in place, I did it with a small condo a few years ago.  

    Other investors may be interested and you also have investors who are running outta time with a 1031x.  Just be sure to be transparent with the financials and tenant behavior. 

  • Rental Property Investor · Evergreen, CO · Member since 2018 · 15 posts · 5 votes
    1y

    @Marcus R. Thanks for the advice. I have time, so okay waiting for the right buyer. Then I’ll be the one running out a 1031 :)

  • Dan GuentherBusiness Member
    Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
    1y

    Hey Janet, it's good to hear that you are not in a rush to get this one moved. I've helped multiple investors over the years in this exact situation and while it is definitely more difficult to sell a property with tenants in place, it does happen all the time! Being that your tenants are month to month does provide some relief for the new owner in terms of being less restricted on raising rent and/or replacing the tenants. I'll send you a DM now and we can talk about a few ideas that I have for you to be able to move this off market. 

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    A couple options… 

    1) Coast as is until March for better selling season, more buyers, higher price. 
    2) Raise the rent at least half way to market. Helps carrying costs while waitingg to sell and makes financials look better for investor buyers. If they decide to move out you can do the remodel. 
    3) are the tenants in any kind of financial situation to buy the property? They may less sensitive to need upgrades/remodeling and avoid moving. 
    4) get a backup/lowball offer from opendoor, offerpad, etc etc. Then you’ll have a backup plan. Heck, who knows maybe they’ll be acceptable. 

  • Rental Property Investor · Evergreen, CO · Member since 2018 · 15 posts · 5 votes
    1y

    @Bill B. Great advice and ideas, thanks! My tenants have had an open offer to buy it for a few years at well below market price, but they just cannot make it happen. That would really be ideal. Thanks again for the guidance, I’ll look into all!

  • Rental Property Investor · Evergreen, CO · Member since 2018 · 15 posts · 5 votes
    1y

    @Dan Guenther I got your message and replied. Thanks so much for the advice and connection!

  • Real Estate Consultant · Columbia, MD · Member since 2017 · 160 posts · 55 votes
    1y

    Hi @Janet R.,

    Selling a property with tenants in place is definitely doable, especially with the right buyer—usually investors who value the steady rental income. Listing it “as is” with a $25k rehab concession can attract these buyers.

    Consider these options:

    • List on investor-focused platforms like Roofstock or BiggerPockets or Facebook Marketplaces, where you’ll find buyers who appreciate tenant-occupied properties.
    • Network with local investors or REI groups in your area to find someone looking for a turnkey rental with upside potential.
    • Hire a real estate agent experienced in selling tenant-occupied properties, but adjust your pricing to cover commissions if needed.

    Make sure to highlight the stable tenants and ADU potential—those could be big selling points! Good luck!

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