Should a home in Buckhead ATL stay as a quad or return to a single family home?

[Nicole Harrington]

Hello, I am a local Realtor and I need some advice. I am going to look at a home that is in Buckhead Atlanta and is currently divided into 4 units but is a single-family home. Rentals are below market, 3/2 $1700, 2/1$1200,$1200, attic studio $800. Single-family homes in the area sell for $1mill+. My dilemma though is that I am having a hard time coming up with the home value if divided into rental units. Can anyone give me some advice? Should it be turned back into a Single-Family home? or maybe do a house hack 

[Michael Dumler]

@Nicole Harrington, being that the subject property is located in Buckhead, those rents seem well below market value as you've noted. As with all real estate scenarios, it depends on several factors/conditions. First, are the tenants on fixed leases or month-to-month? Unfortunately, if the tenants are long-term and their leases do not expire until Q4 of this year or 2024, there's not much that can be done to entice the tenants to move out. I assume you're trying to list the home? The seller should recognize the fact that he/she would receive far more competitive & aggressive offers if the property is listed vacant. Ideally, he/she should just wait until all tenant's leases expire and list the home according to respective sold comparables. It's going to take a certain high-wealth investor to want to pursue this deal. Moreover, I can't imagine there's going to be too many buyers interested in house hacking at that price point, but maybe I'm wrong. Long story short, the property should be turned back into a single-family home. Also, I assume the property is not permitted as a quadplex which may or may not lead to lending issues during underwriting. Hope this helps!