Bexley Park out-of-state rental - sell or keep?

Question

Hi everyone, I live in VA now but still have a rental in Bexley Park Delray Beach 33445. Bought in 2000s 3/2.5 townhouse, rents 2400 but needs work, HOA and insurance up. Tired of managing from far. For those who sold out of state rentals, did you list with agent or sell off-market speed? What discount is normal for quick as is sale? Anyone sold in Bexley Park area while living out of state? Thanks.

Drew Sygit · Answer

Understand that if you try to sell tenant-occupied, you will only be able to sell to another investor - which means someone looking for a deal that will usually offer less than "market value".

To get the highest possible sales price, you will want to sell it vacant, so an owner-occupant can buy it.

James Jones · Answer

Sold my share of underperformers over the years. Here's the rule I use: if a property can't clear my return hurdle, it's not an asset I'm holding - it's capital I'm parking badly.

$200/month on a 3/2.5 you bought in the 2000s sounds fine until you run the real math: HOA $350, insurance $2.8K/year, 10% PM, vacancy - you're one roof or one long vacancy from a losing year. And out-of-state only works when the numbers are strong enough to survive the PM layer. Yours aren't.

I run everything through the 1% rule. A house all-in under $100K needs $1,000+ in rent - my Memphis 3BRs pull $1,395-$1,950 through Section 8. I'd sell the townhouse and redeploy into deals that actually cash flow.

Across 236 properties, some of the best money I ever made was selling the ones that stopped earning. Nostalgia isn't a strategy.

Muyees Ayilara · Answer

James thanks - 454 doors wow, appreciate this! Your 1% rule makes sense - my $200/mo calc was before vacancy, so real is maybe $0 or negative. Your menphis section 8 numbers $1395-$1950 on $100k all-in is strong vs Bexley $2400 rent on $480k value. If you were in my shoes with out-of-state Bexley TH needing $70k rehab, would you take 15% off for 10-day as-is or list? Trying to learn. Thanks!

Muyees Ayilara · Answer

Thanks hussein! True, 10-15% as-is cut for 10-day close vs fixing and listing 30-45 days. For Bexley Park 3/2.5 built 1990s, do you know what a realistic CMA is now? I saw $460k-$495k ARV for update ones, but as-is with original roof AC maybe less. Any agent you recommend who actually sells Bexley Park?

Hossein Sharifi · Answer

At ~$200/mo, holding mostly for appreciation from out of state is a tough case unless you have a clear value-add plan. Before accepting a speed discount, get CMAs from two or three agents who actually sell in Bexley Park, and don't let an off-market buyer name the haircut. A 10-15% as-is cut for a 10-day close often costs more than fixing the obvious items and listing for 30-45 days.

Gregory Acs · Answer

Hi Muyees,

If it were me, I'd compare the long term value of keeping the property against the cost and hassle of managing it from out of state. If the property still produces solid cash flow after factoring in repairs, HOA, insurance, vacancy, and property management, it may be worth holding. If those costs are eating into your returns, selling could make more sense.

As for selling, I'd get opinions from a few local agents before deciding on an off market sale. You'll have a better idea of what the convenience of a quick sale is actually worth versus listing it on the open market. Sometimes a little more time can result in a significantly better net outcome.

Muyees Ayilara · Answer

Hi Gregory thanks for this! Makes sense. In my case HOA $350 + insurance up $2.8k this year + PM 10% + vacancy, cash flow is like $200/mo now vs $600 before. So leaning to sell. Did you see sellers in Delray taking big discount for off-market speed vs listing? Like 10-15% less for 10-day close? Wondering what is normal for Bexley Park 3/2.5. Appreciate your lender view!

Bexley Park out-of-state rental - sell or keep?

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