Selling duplex- What can we do to max. return on Property?

Question

We current own a side by side duplex, and looking on selling in the next year or so. We are thinking of doing some updates to both sides but are not sure if it is really worth it as it is a rental property. I know for home they say baths & kitchens are important - what about a duplex? What do people look for when purchasing one? Help !!

Answer 1

Paint & carpet, make sure there are no buyer objections (like leaking roof, dated appliances, meth lab in the cellar, etc)

Answer 2

Renter aspect
First thing is to look at the kitchen and baths and say would I cook and clean in this room. If so, leave those rooms alone. Even if they dated they are ok. Maybe update the oven/range and dishwasher. . New paint and carpet is cheap, as long as you have a replacement budget.

Buyer Aspect
The buyer is looking at a good gross rent and overall functional utility. Is the Roof, exterior, furnace, C/A, water heaters, appliance in good working order? Are these items at the end of their useful lives? These are costly items. If you have replacement reverses and these items need replaced they should be replaced and you should get more return.

Another option
There is a lot of Baby Boomer retiring and these people want some income. These older retied singles or couples will pay cash for these duplexes. If you have a unit in need of work, fit it up for an owner-occupied unit. Remodel the kitchen and bath, new paint and flooring. List the property great for Owner. You will get return only if the unit you fix up needs fixing up. Don’t over improve the unit and keep the unit similar to other units in the area. Only fix up one unit, because there is always someone willing to rent any unit for the right price.

Answer 3

As a licensed real estate broker who assists investors in purchasing rental properties, this is what they look for:
1. a good return on their investment. The Cap rate of the property (at least 10%, because most are going to have a 6.75% loan, so they have to make more than they could by just leaving their money in a cd (4.5%)); 2. they look to see if there are any physical deterioration that they will have to plunk cash into after they buy-if there is, usually they walk. i.e, floors are slanted, means foundation is settling, bowed, or worse(can be expensive to fix); vertical cracks in walls, basement, or crawlspace: means footings are not secure, water has gotten to foundation, drainage not right (another expensive repair); guttering and downspouts, make sure that ALL water is funneled away from foundation. 3. neighborhood: are you in a crime infested area or one that will 'die' if a company closes its doors? A mixed neighborhood is good (one with residential and rentals).

First impressions last; do repairs on exterior first: paint, windows, vinyl siding, guttering/downspouts, landscape so water rolls AWAY from building. Paint interior for best ROI, don't worry about upgrading the kitchen, bathrooms; steam clean carpets-no need to replace.

hope this helps.

Answer 4

Renters seek clean rentals at cheapest prices. I wouldn't update at all, if things are working. However, I would ask if you will be paying a mighty big capital gains on your duplex. I know that I have homes that I rent out, and would love to sell, to STOP being the landlady! Still, I am waiting until my husband and I sell the rentals AND our home, to put all the money into a different home to live in............to avoid the cap gains.

Answer 5

Most people buying duplexes are looking at them for an investment. So fix/replace anything that isn't working, clean, clean, clean, decorate in all netural colors, make it as move in ready as you can. I wouldn't put anything real expensive in, cause it's probably going to be rented. Anyone buying any property is looking to buy and not have to do anything to it! Also try to make it look cute from the street. Good Luck!

Answer 6

buyers and renters are always impressed with a new kitchen - 2 or 3 bathrooms are getting common - if you only have one bathroom it's a good idea to add another - the maintenance should be current such as roof and siding - freshly painted - make it look like something you would want to buy or rent

Answer 7

Well a buyer would likely be an investor. They will be looking for a good floorplan. Updates do matter but be reasonable with them. If you can increase living space, add closets, better appliances etc, that would be good. Think of it from a renter's perspective. What would a renter want?

Answer 8

i think of Derek is ideal - i could specific attempt to locate strategies to triumph over the annoyances of distant managment with a view to maintain that style of return on my investment. in case you nevertheless want to sell, your purely expenditures are probably going to be an proprietor's identify coverage and the amassed aspects taxes for the 300 and sixty 5 days up till last. i think of to make the sale i could purely consume those particularly of chasing away ability purchasers with extra funds they'd desire to cough up.