Rent it out...or Sell ?

Real Estate Investing Single-Family Homes
1

HI all,

I have a couple of SF homes in lower income neighborhoods. They are nice homes in the better part of the town (yep…they have nicer blocks in the hood).

  1. I can rent them out as Section 8 and then sell as an investment home…
  2. or i can sell them as-is.

If i rent them out…and investor will have to bring cash—or have GREAT CREDIT to get a loan. Or…they can get a hard money loan.

I could also try to get an end user to buy them…but they would also need great credit and in the hood…that might prove difficult.

Guess i should try a test run on the MLS and see what happens.

Which do you think will bring more money and Why?

2

Just flip a coin - either way the actual value wont change. I cant speak for all the landlords (especially the ones who fail), but i prefer to buy income property when its vaccant, and prefer to put my own tennants in.

3

I would think that more value would be created by

-placing a Section 8 tenant in property. That’s guaranteed payment (gov portion anyway).

You can then sell based on your current cap rate.

Don’t know…i’m gonna advertise it…and see what happens.

[QUOTE=AmotoXracer;885432]Just flip a coin - either way the actual value wont change. I cant speak for all the landlords (especially the ones who fail), but i prefer to buy income property when its vaccant, and prefer to put my own tennants in.[/QUOTE]

4

other option…

Another option you could consider to sell your houses could be do do it with owner financing. There are alot of good people out there now with good jobs and money for down-payments, but the banks will not give them a loan. If you are willing to sell your house(s) to someone with “less than great” credit and you can verify their income, credit, and whatever other checks you want to make on them. You can sell them your home(s), take a down-payment from them, and have their monthly payment cover your mortgage payment (and more if you have the equity for it).

It is probably the best way to make money in real estate now - definitely make more money than trying to sell traditionally. And you don’t have any of the responsibilities of being a landlord. “You are acting as the bank”, yourself. If they ever default, you can get your house back and start the process over again…

I can help you do this if you want to. Contact me if you want more info.
Larry Chafe