Should we re-rent out our investment property or sell for the land? The house is 2BD/1BA on a quarter acre.

Asked by koriath, Glenview, IL Mon Apr 1, 2013

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8
Kate Barnett, Agent, Glenview, IL
Mon Apr 1, 2013
There are many factors to consider in order to answer this question. Is the rent covering the expense of owning the property? Do you have equity in the house? Do you have an alternate investment idea? The rental market is doing quite well right now and property values are slowly moving up. You could put it on the market to rent and to sell to see how the market repsonds. I'd be happy to do a market evaluation to help you make this decision.

Give me a call: Kate 847-858-9262.
1 vote
Thank you!
Flag Tue Apr 2, 2013
Paul Cionczyk, Agent, GLENVIEW, IL
Tue Apr 2, 2013
Why would you consider selling now vs. re-renting is the main question. If you sell now, what else will you do with the money? Will it bring you a better return? Many investors, both public and private have been piling billions of dollars into residential real estate investments over the past couple years, and they are continuing to do so now. Combine that along with rising rental rates and very low interest rates, and it seems to make sense to own rentals.

If you still consider selling for the land value, work with a realtor to figure out what the current price .25 acres will fetch you as a teardown. That number varies greatly depending where in Glenview your parcel is located. Additionally, I have seen some homes that people consider teardowns, get bought by families looking for a starter home to fix up. Either way, inventory is low, and many realtors will most likely have several builders/contractors on speed dial that may jump at your opportunity.

If you decide you would like to review your options more in depth, I would be happy to sit down with you over coffee/tea and help weigh out the pros and cons of both your options.

Paul Cionczyk
Coldwell Banker Residential Brokerage
http://www.PaulCionczyk.com
312-433-9931
Web Reference:  http://www.PaulCionczyk.com
0 votes
Bryce Fuller, Agent, Glenview, IL
Tue Apr 2, 2013
Depending on the location Koriath, I might have a buyer ready to buy right now. He would pay cash and close on a flexible schedule. If you are interested in talking about it, please call me at 847-208-7888.
0 votes
Russ Richard…, Agent, Myrtle Beach, SC
Mon Apr 1, 2013
What is the current market value of the land? I would suggest a highest and best use or break-even financial analysis based on current rental income and anticipated sales income. In order to complete a true financial analysis, you need to consider any debt against the property and long-term future income potential. Evaluate income potential with your current property as well as income potential of investing the profits of sale elsewhere.
0 votes
Thank you!
Flag Tue Apr 2, 2013
Paul Fijalko…, Agent, Arlington Heights, IL
Mon Apr 1, 2013
Hi,
Not knowing your situation and your goals it is hard to give good advice but here is what I think. If you don't need the big chunk of cash right now you should go and rent it, on the other hand if you need the money sell it.

If have any more questions or need help please feel free to contact me.

Paul Fijalkowski
Coldwell Banker Residential Brokerage
847-532-2093
Paul.Fijalkowski@cbexchange.com
0 votes
Thank you!
Flag Tue Apr 2, 2013
Vienna Jacob, Agent, Glenview, IL
Mon Apr 1, 2013
I would say that it depends on what your goal is.
Currently the market is trending toward more of a sellers market so you should have no problems selling it if you want to be done with it.

If your question is do I think your investment property will sell right now then the answer is yes and probably very quickly.

On the other hand rent prices have also gone up in recent years so you can make a decent amount on the rent depending on your operating expenses.

If your question is do I think it will rent , then yes, I think it will.

More importantly I think you need to decide weather you would like to continue to be a landlord and all that comes with that role or if you're ready to move on to something else, the market seems to support either decision.


Good Luck!
0 votes
No worries, It never hurts to ask.
Flag Tue Apr 2, 2013
Thank you!
Flag Tue Apr 2, 2013
Evan Kane, Agent, HIGHLAND PARK, IL
Mon Apr 1, 2013
I would not sell land now unless you had a very compelling reason. I predict prices for land will rise substantially over the next few years.
0 votes
Thank you!
Flag Tue Apr 2, 2013
Arlyn Tratt, Agent, Skokie, IL
Mon Apr 1, 2013
Koriath,
I would love to learn more about your location.
The rental market is really hot right now, but I also work closely with a builder that is looking for lots.

Lets Connect!
0 votes
Thank you!
Flag Tue Apr 2, 2013
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