Home Selling in Salem>Question Details

Aussie, Home Seller in Salem, OR

would this be a successful time to sell a 4-plex here in salem?

Asked by Aussie, Salem, OR Thu May 14, 2009

thinking would like to divest of this apartment house. Would prefer getting the job done within a short period of time. And at a "reasonable' price?

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Aussie.

I somewhat agree with Craig. Having said that this is also possibly a good time to sell. Nobody is making much return on anything and so if your plex is at a price that it can be sold and offer a solid return after expenses to the buyer it might be in Favor with investors.

Also...what are you going to do with the money??? Are you going to pay 50% to the feds in taxes? Or are you wanting to complete an IRC Section 1031 exchange and roll into a new property? There are some simply incredible buys around and so you know I would say this needs some further review.

I handle plexes and commercial property on top of residential and have for years. So I am saying let's look at this more closely. Upon further examination I could give you a more reasoned explanation.

My email is dirkknudsen@gmail.com if you wish to contact me further.

Regards;

Dirk T Knudsen
Principal Broker
Re/Max Hall of Fame
503-799-8383
Web Reference: http://www.calldirk.com
1 vote Thank Flag Link Thu May 14, 2009
Aussie,

Investor buyers, as you probably know, look at numbers when buying - and yes, there are plenty of them out there right now buying property. The key for your sale is your numbers: cap rate, gross rent multiplier and cash on cash return. These are key ingredients. Gather your expenses for the last 12 months, detail them out and take a hard look at the numbers. If the numbers work, your property will sell, if not, it will sit. Keep in mind that price is a factor in all those numbers.

If you decide to sell, hire a Realtor who works with investment and multi-family property - just because someone sells lots of houses doesn't make them qualified to sell investment property - it's a different animal. Also, be sure to check with your CPA about cashing out your property versus doing a 1031 exchange on it. The time you've owned it will factor in because of how much depreciation you've taken on it.

Julie Fugate
Principal Broker, Premiere Property Group, LLC
Keller Williams Realty
(503) 522-1900
0 votes Thank Flag Link Fri May 15, 2009
Depends on how much money the property is making for you now, and what your current financial situation is. Prices for most properties are going down, and mortgage money is harder to get, especially for non-occupant owners. The good thing is that better deals are starting to become available for buyers. The bad thing is that that means prices for sellers are also lower than they were awhile ago.

I would say, if you don't need to sell, and you're making money, you may want to consider hanging on to it for awhile. However, it's best to ask an accountant for advice. You need an opinion based on a complete analysis of your own specific financial situation.

Best of Luck,

Craig Loughridge
Web Reference: http://www.bybryson.com
0 votes Thank Flag Link Thu May 14, 2009
Hi Aussie,

Where is it located in Salem? Can you give us a few more details about it? I'd be happy to take a look at comparables for you, and email you a copy of recent activity for multi-family. This will give you a better idea of whether or not you wish to sell at this time. My email is MelWagnerBroker@msn.com.

Warm regards,

Mel Wagner, Broker/Realtor
Coldwell Banker Mtn. West
503-931-1846
http://www.MelWagnerBroker.com
0 votes Thank Flag Link Thu May 14, 2009
The median sold price for 4 plexes in Salem Oregon in the past 6 months is $270,000. They are taking an average of 218 days on the market to sell. They ranged from $161,500-$300,000 in sold price.

So I'm not sure if you would define that as a short period of time or a reasonable price.
0 votes Thank Flag Link Thu May 14, 2009
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