Hi Patty.

I live in Longwood and have sold real estate in this market for almost 18 years. With the information you provided I'd suggest selling sooner rather than later. It can be difficult to sell with a tenant in place and financially difficult on you to sell after they vacate...and after you do the necessary cleaning and preparing the home to go on the market, if that applies in your case.

It depends on your tenants how feasible it is to try to sell while they are residing in the home. I had a tenant tell me and the owner two weeks ago that the only time anyone could show the home was for three hours on Mondays (no kidding)! Obviously that owner will wait until the tenants vacate, have the landscaping spruced up, clean the carpets and do a general cleaning (it is filthy) and then put it on the market.

You'll ultimately weigh the price you can get selling it as a rental (investors aren't buying these days unless they can almost steal a property) against the price you'll get when the tenants are gone and the home is fully available. There are many vacant properties for sale so a tenant occupied property will get fewer showings too. Not being negative, just trying to give you both sides of the discussion.

I'd be happy to do a CMA and email it to you, at no cost or obligation. I think I'd decide to sell or hold based on whether I could get out now and break even or have a minimal loss rather than taking my chances on waiting. It depends on how much you paid and how much competition is on the market in the area, but if the numbers work for you I'd let the tenants go at the end of the lease and get it on the market. If you have GREAT tenants who will stay month to month and allow the house to be shown, that could work for you too.

Lastly, is there any chance you could strike a deal with the tenants to buy the property? Even if you offer to pay some closing costs, if they can qualify and want to purchase that could be better for you financially than hiring me! Let me know how I can help.

Marty Hunt
Realty Executives Orlando
(888) 412-8681
mailto:marty@martyhunt.com
http://www.MartyyHunt.com

Hi Patty,
Your dilemma is two fold....If you wait to list your property, you may find that comparable sales have been more severely impacted by short sales and "desparate" sellers in the months to come resulting in a lower market value for your home. Unfortunately its impossible to predict exactly when the market will turn and exactly how low it will go before doing so.

If you list now, you face the possibility of losing long term tenants who would be uncomfortable living in the uncertainty of the home being "sold out from under them" even once their lease is up and they are perfectly happy to stay. This is also complicated by the fact that existing tenants can make the showing process quite difficult if they really dont embrace the idea of moving anytime soon.

What you need is a strategy that will allow you to effectively address both of these dilemmas at once. You also need a close examination of the management hurdles you may be facing and how to take a proactive approach to alleviate those issues with your tenants.

I would welcome the opportunity to offer my suggestions and ideas with no obligation on your part. Feel free to contact me when you are ready.

Angela Faulkner, Broker
Principal First Realty
863-709-1735

Patty, prices are expected to drop even further...some predict until 2009 or 2010. Who knows? We see a ton of foreclosures and short sales hitting the market, which is impacting us. If you're only considering holding the property until Summer 2009 at the latest, you're most likely looking at getting less than you would by selling today. If you truly want to sell, do it now, unless you can hold it indefinitely until the market rebounds. If you'd like more info and have any additional questions, don't hesitate to contact us.

Patty, when you buy at the bottom, down turn and peak of a market you will have many factors to consider. Among these are finding out the Five Major Factors: Interest Rates, Inflation, Flow of investment funds,Buisniess cycles and Cataclysmic events. Understanding the real estate cysles is THE MOST IMPROTANT THING TO DO when investing. There are also 5 Local Factors: Migration adn Job Growth, Path of development, New construction, supply and demand and Neighborhood factors.
INTEREST RATES: THis is pretty self explanatory, Are the rates going up, level or down? (look for the 6,12 and 5-25yr trend).
INFLATION: Is it going up or down or flat? Although you may not be able to increase rents (real estate prices historically rise just as much as inflation) the value of your rental property will increase.
FLOW OF INVESTMENT FUNDS: Are people rushing into the real estate market or out (and into the stock market)? FLow of funds can shift from either stocks or RE pretty quick sometimes.
BUSINESS CYCLES: Is the National economy in recession or prosperity? THis affects real estate in many ways too.
CATACLYSMIC EVENTS: No need for explanation here - did katrina affect the real estate market in a positive or negative way? I hope you are NOT in any of these areas of concern.
WNAT TO LEARN MORE? Google the topics/Headings and DO YOUR RESEARCH! Tkae the tinme to search out what factors are going to enable you to HOLD, BUY MORE OR SELL NOW OR LATER!...I hope this helps Patty - when in doubt call your local Realtor and get some historical and present comps (6mths, 1yer and last 2-3 years)...

I just went through this with the IRS.... Put it on the market right now or its not considered to be "in service" and you get "different" tax benefits and that cost me a pretty penny.

Check with your CPA to see if the same applies to you,