Planning on selling rental this summer - pull the plug?

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sunny_socal
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Joined: Tue Mar 24, 2015 4:22 pm

Planning on selling rental this summer - pull the plug?

Post by sunny_socal » Tue Mar 17, 2020 6:47 am

Hi everyone,

We have a rental home in CA and were going to sell it. About a month ago I informed the tenants of our plans.

Now... I have no idea how things will look in the summer. Not sure what to do.
[1] Tell tenants: Never mind, you can stay
[2] Just try to sell it anyway. Run a risk of house sitting there for months, I'll be making payments on my own.

House is in SoCal, where a sale normally happens within weeks and likely above asking.

C-man23
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Joined: Mon Aug 06, 2018 12:47 pm

Re: Planning on selling rental this summer - pull the plug?

Post by C-man23 » Tue Mar 17, 2020 7:45 am

I am in the same boat, except with a property in the Nashville area. Was planning on letting the tenant know at the end of March that I was going to sell, but keep going back and forth in my mind.

If the value drops significantly, I would want to just hold it. However, if I can get what it is worth at this time, I would sell.
Just not sure what the real estate landscape will look like in 90-120 days. The fear of people losing their jobs and people unable to pay their rent/mortgage/car payments will not be good for future home sales.

michaeljc70
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Re: Planning on selling rental this summer - pull the plug?

Post by michaeljc70 » Tue Mar 17, 2020 10:02 am

I would wait and see what happens. This could largely be over then. If not, just give the tenant enough notice you're not selling if you want to keep them.

carolinaman
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Location: North Carolina

Re: Planning on selling rental this summer - pull the plug?

Post by carolinaman » Tue Mar 17, 2020 10:22 am

There is little doubt that current crisis will negatively impact real estate for a while. The question is for how long and how much.

Shallowpockets
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Re: Planning on selling rental this summer - pull the plug?

Post by Shallowpockets » Tue Mar 17, 2020 10:24 am

Viewing of the property may not be adequate as people stay away from social mixing.

rich126
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Joined: Thu Mar 01, 2018 4:56 pm

Re: Planning on selling rental this summer - pull the plug?

Post by rich126 » Tue Mar 17, 2020 10:28 am

Probably going to vary a lot on the local market and whether you really want to get rid of it soon or don't mind keeping it long term, if necessary.

I'm living in a house that I've both previously rented it and also lived in it. At one time I was planning to keep it for my retirement but am reconsidering due to some unnecessary expenses with it (large pool that I don't use much but the upkeep is high, bathroom not ideal as you age, etc.) and until the virus hit, a very hot market so it seemed to make sense to sell it and take the tax hit.

Although the house is nearly paid off, so I could easily rent it (desirable area in Scottsdale) but not sure I want to deal with a rental in my retirement years.

Like you, I'm not sure what I will do. I doubt I would sell if it the market cools off, I avoided that in the 08-11 real estate fall out here and see no reason to sell into a bad market if I don't need the money.

If you are happy with the renters and they would stay maybe wait another year or so and see what happens. The problem with that is that the market just might cool off and then slowly drop and waiting just costs you more money.

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