Home Selling in Manassas>Question Details

Heyhey, Home Seller in Manassas, VA

Got an investment property @42K, rent=$800/mo mortgage=$500. May be able to sell between 79-85K. Possible roof repairs & plumb issues. Sell or

Asked by Heyhey, Manassas, VA Thu Oct 27, 2011

keep? The property is due for a full roof update (we think this includes supporting beams). The water heater may be on it's last limb along with a huge plumbing fix to the main water line since tree roots are growing in it. It's 864 square feet with 2 levels. We also owe my dad $12K when we decide to sell plus we send him $100/mo for lending us money. We have no money in our investment account due to so many other repairs. Property shows well. Is it worth keeping? We have the home in our own name. Or should we suck it up and pay capital gains tax, realtor commission etc? Thanks for your input!

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UPDATE: Hey all! We sold it last October for 74K!!!
0 votes Thank Flag Link Wed Jul 18, 2012
I can meet with you and take a look at the Property Condition, as well as being a Realtor I worked as a Project Manager for a Class-A General Contracting Corporation for many, many years! I will be able to assess the Properties Condition, plus I have many contractors to give You and I estimates as well, to assess how much more contracting work is Needed.....Then we can put those numbers side by side with the Comps that I will pull for You! Once we do that you will have a very accurate logical assesment to the situation! Selling could very well be an excellent choice for you to make, from the stand point of boosting your credit score! Which in turn increases your buying power, combined with freeing up your debt to income Ratio's! Which will allow you to Buy more home without all the repairs Needed? I can also put you in contact and run the Numbers with an Underwriter who will give you and I even more information on what is Needed and what Lending Programs would then become, available to YOU?
0 votes Thank Flag Link Wed Jul 18, 2012
I'd be interested in taking a look at it. I'm a cash buyer and live locally.
0 votes Thank Flag Link Thu Oct 27, 2011
Hi. I can buy your house in Manassas and pay cash, close fast, and you don't have to pay a commission. Please contact me about your house. My number is 703-371-9548 or you can fill out my online form and I will call you back after I receive your information. You may visit my website to fill out the online form. http://www.manassashousedeals.com and click the link that says "fill our our Problem Property Online Form by CLICKING HERE NOW."
0 votes Thank Flag Link Thu Oct 27, 2011
It is a little hard to give you an answer that you can take to the bank. Have you had the roof inspected and gotten an estimate for repairs? Tree roots can be removed fairly easily depending on the type of pipes you have to the main sewer line. A professional plumbing company can take care of it. Depending on the size of your water heater you could be looking at less than $1000 to replace.

Are you sure of the sales price for your home? Do you want to get rid of it due to the problems or are you tired of being a landlord? How long have you owned it? This plays into your tax issue or if you are looking to continue as a landlord you could do a 1031 exchange and buy another rental property.

There are ways to list your property for far less than the commission mentioned by the previous agent. If you are interested in talking in more detail feel free to drop me an email and we can set up a time to chat more about your options.
0 votes Thank Flag Link Thu Oct 27, 2011
Since I am not a financial adviser and do not know your personal situation, I will just break down the facts...

Say you sold the home at 79K, paid a 6% agency commission = $74,260 - 20% (estimate) capital gains tax = $59,408 - title fees = roughly $58,000. - potential closing cost assistance to the buyer and home inspection repairs. Doesn't seem to leave you a ton of money to pay back your dad... & the roof repairs and water heater are going to be noticed by the home inspector...

If you rent the home, you seem to be making a + of $300 per month which covers your payment to your father, however you would need to sink at least $800-$1200 for the water heater and depending on the size of the home a few grand for the roof. Not sure what the plumbing repair would cost you.

Sounds like you need to figure out if you can swing the repairs before trying to break it down any further. Also, if you didn't sell...how long would you hold on to the house? If it was only for a few more years doesnt sound like you would make up the cost of completing the repairs. But if you are in it for the long haul it might make sense to hold on to the unit.

I would sit down and consult with an agent that works your local market and see what their market value estimate is as well as get some estimates from contractors about the work... Gather your figures.
0 votes Thank Flag Link Thu Oct 27, 2011
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