Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
So I have a unit that I bought in April 2017 for $71k HOA FEES ARE $300/month. I immediately rented it out for $850/month with an AMAZING Tenant. He pays rent on time, keeps the place spotless, and never gives me any issues. In may of this year I was going to increase the rent but I gave him a chose to pay $50 more per month or if he signed a two year contract I would keep the rent at $850/month. He agreed to the two year contract. This year the property has increased in value and is now worth $95-100k based on other units in the same complex being sold. I would like to sale it (meaning I would get 90% of sale price after all the fees and everything).
i have $95k from another unit i just sold (hoa fees there where $300/month), and i have another $60k saved up.
Questions:
1) should I sale? If I sale, I would put all the money together and instead buy a house ($200-250k with HOA fees at $150/quarter). Rent of the area where I am thinking is between $1500-2000/month.
2) can i sale with the tenant inside? I the tenant and I dont want him to lose his home (he has earn My respect).
3) can i ask more since I already have the tenant inside for two years?
You can SELL a tenant-occupied home and the tenant's existing lease transfers to the new owner. In other words, the tenant can't be forced out, his rent can't be increased, etc.
The difficulty is getting a tenant to cooperate. They may not want a bunch of potential buyers traipsing through the house. They may sabotage the sale by complaining about the HOA or that the cabinets are cheap or utilities are expensive.
It sounds like your tenant is a good one so it may not be a problem. Talk to him and find out.
You’ll be selling the house to another investor. This may limit your options, since no one is going to be able to move in with the tenant in place.
Of course, marketing to an investor who doesn’t really want much work, might even get you a better deal! A good tenant who pays on time and presumably cash flows might be perfect! I’d market it with the financials, so a newbie investor can look at it and salivate over the $xxx month!!
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