House hack in Payson?

Question

I have a Two floor rental in Payson that I'm considering selling that I've owned for about 5 years with long-term renter on top floor and short-term renter on bottom. I'm thinking about selling and wondering if I should try to rent to a new party on the top before selling or let the lease expire to market for the buyer to do their own house hack? What do you think is the better marketing strategy, especially given the slower winter season approaching?

Lauren Kormylo · Answer

I would not put a new tenant in the house if you want to put it on the market. A buyer will have to honor that lease, and that complicates things. Since it's a combo of a long term and short term rental, selling in the off-season may not matter much to investors. I live in Phoenix and was in Payson and Christopher Creek a few months ago, hadn't been there for years. I used to camp often on Flowing Springs Rd at the river crossing decades ago, but I see camping isn't allowed there anymore.

Andrew Steffens · Answer

Never heard of Payson but I second @Jules Aton most rental buyers want to put their own tenant and only care about what the market rent is.

Jules Aton · Answer

I know nothing about your area but in my experience an empty property is easier to sell than one that is rented.

Noah Corwick · Answer

Hi Sophia. If you can avoid it, I'd recommend keeping new long term tenants out of the property. Having tenants in place complicates the transaction including the logistics and flexibility.

Another variable I often see is that the monthly rent does not come close to the new mortgage payment, so the numbers are way off.

On top of that, it limits your buying pool, as maybe a buyer wanted to live there themselves.

While it's on the market, you can still use part of it as a STR, but this likely will increase your days on market due to limited showing availability.

Matthew Tregoning · Answer

For the marketing side, I'd show the upstairs and downstairs separately and include a simple floor plan. Separate entrances, parking and laundry are the details I'd want to see right away as a buyer planning to live in one half. Five years of rental history is useful too, but keep the two units' numbers separate.

Divin Kanyama · Answer

@Sofia Tobar I would probably avoid locking in a new long-term tenant unless the numbers clearly support selling it as a fully rented investment. Leaving the top unit vacant gives a buyer more flexibility to house hack, choose their own tenant, or renovate, which can widen the buyer pool.

The tradeoff is timing. A vacant unit during a slower winter market means carrying costs and less income if the sale takes longer. Before deciding, I would ask a local agent to compare likely pricing and buyer demand for an owner-occupied setup versus a fully leased rental.

If the current lease expires near your listing date, month-to-month could be a good middle ground, provided local rules and the tenant allow it. That preserves income without limiting the next buyer too much. Ultimately, I would base the decision on your likely buyer: investors may prefer stable rent, while house hackers usually value flexibility.

Sofia Tobar · Answer

Thank you all who replied, very helpful and appreciated.

House hack in Payson?

House hack in Payson?

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