Eric Childers, Home Seller in Klamath Falls, OR

I have a duplex in Klamath falls that I would like to sell. Both units are currently rented. I'm looking for

Asked by Eric Childers, Klamath Falls, OR Sun Feb 17, 2008

advice on the value of investing time/money in improving the property before putting it on the market. I would be happy to provide more details to a realtor with experience with investment properties in the Klamath Falls area.

Thank you,

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Hi Eric, although I am not in Klamath Falls I can offer some general advice for maximizing resale value. You want to anticipate any buyer making a request for inspections, namely pest/dry rot & whole house. It may be wise to correct any pest/dry rot such that a clean report would be the result, as well any issues a whole house inspection may reveal. As well, your tenancy may be long term such that rents may be in their favor, or are you maximizing rents now? A few, important perspectives an investor will make is the longevity of the improvements (do they need work?) and for there to be any upside to rents. If your units are vacant, you might consider to improve any areas where an increase in rents would be the result, such that an increase in rents would result in an increase in value (price).

In appraisal, when considering valuation to multiple family properties, we will capitalize rent with a multiplier. For example, $1,200 month rent x 100 = $120,000 valuation. We derive the multiplier from the market sales where a comparable that sold for $200,000 and fetches $2,000 monthly rent would indicate $200,000 divided by $2,000 = 100 multiplier. Your multiplier may be erroneously high if your rents are low, and your multiplier may be erroneously low if your rents are high or your price is high...so it is important to 'peg the market' on rents when pricing.

Probably the best advice I can give is to consider what improvements would increase your potential rents, and also if there is any upside to your rents now. If your units are vacant, attempt to have them occupied which will appeal to an investor that is purchasing for cash flow. As well, there are buyers who want to occupy one side and rent the other (or have another family member occupy). This is especially true if your duplex is located in a predominantly single family residential neighborhood where locational appeal is stronger than in a preponderantly multiple family neighborhood. Regards, Chris@HouseNow.com
Web Reference: http://www.HouseNow.com
1 vote Thank Flag Link Mon Feb 18, 2008
Hi Eric,

Sounds like you got some good sound advice. If you have not already decided on a Realtor, I would love to have the opportunity to help you with your Real Estate Needs.

Thanks,

Teresa Metts
0 votes Thank Flag Link Tue Apr 29, 2008
Hello Eric,

I would love to help you with ll of your real estate needs.

I look forward to talking to you,

Linda Knust
Broker
Coldwell Banker Holman Premier Realty
541-892-3333
LJKnust@aol.com
Web Reference: http://www.LindaKnust.com
0 votes Thank Flag Link Mon Mar 3, 2008
I would contact a real estate pro. In your city. The information Chris gave was great however it will be more useful for an agent to come take a look at your places and lend an honest answer. You can’t help what you can’t see. Keep an open mind to the ideas. In general make inexpensive changes that add value. New carpets (low grade that shows as clean) new vinyl floors, new paint and be sure it smells good! Keep renters in and advertise that they are rented. Also be sure to hire an agent who is going to market to investors in your city!
Please give me a call I have a great realtor in mind for you who works in Klamath Falls. She knows the ins and outs on how to market your investment!

Farah de Verteuil
Real Estate Sales Specialist
http://www.relocation-home.com
farahv@relocation-home.com
503-758-6281
FarahV
Web Reference: http://relocation-home.com
0 votes Thank Flag Link Sun Feb 24, 2008
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