[Hal Cranmer]

Hal Cranmer

I have a 5BR/2BA house that I bought as a flip when the market tanked and it turned into a rental. It seems to be worth somewhere between $215K and $225K. I owe about $188k on it. I?ve had a wonderful tenant in it for 2 years but they just gave me their notice because they want to buy a house.

I really don?t want to hold on to it long term. I?m thinking a highest bidder sale might be my best option to get rid of it. I am also interested in turning it into an assisted living facility. But it?s a split level which might be difficult for older people to get around. I was wondering:

1. Do highest bidder sales work in the middle of winter in Minnesota? This will be in end of January/beginning of February and temps could be 20-30 below. Or should I wait?
2. Owner financing vs. Selling outright? Do I need to go through a mortgage broker either way thanks to Dodd Frank?

Thanks,
Hal

[DON WEDE]

DON WEDE

Hal,
Tough call January February in Minnesota is brutal, even worse than Illinois. Why not give it a try, better than just letting it sit vacant until the weather breaks. You said you do not want to hold on to it long term but willing to take back seller financing, same thing, please explain.

Don Wede

[Hank Baltar]

Hank Baltar

Hal,

Reading into your situation it sounds as your renters have already found a house. If the renters have not yet found a house, sell your house to them. Per your note, they want a house & you don’t. Why do they need to move – make it easy for them.

Hank

[Hal Cranmer]

Hal Cranmer

Thanks for the replies.

Don – I meant I don’t want to necessarily hold on to it as a rental long-term. I would be ok selling it on seller financing and just collecting a payment each month.

Hank – I tried to sell it to my tenants. They don’t have another house yet. In fact they were asking me if I could refer them to a realtor. They said the house is just too small for their family to live in long term. Their kids are growing up and they want something bigger.