Question:
“I’ve got my fourplex for sale, but nobody’s made an offer. I don’t get it. You get almost nothing with your money in the bank, and I hear that most properties are getting multiple offers. Why do you think I’m not getting any offers?”
Answer:
While what you’re stating is true, it doesn’t mean that people will pay ANY price just to buy a rental property.
Buy and hold investors are looking for a return (above and beyond possible appreciation) that’s worth the work and risk involved in owning rental real estate.
Right now in San Diego, depending on the neighborhood, I’d say they want about a minimum 3-7% cash return.
So the odds are your price will not give investors that return, so they’re not making offers.
Can you guess what advice I have for you?
Get the price in line with the market so your fourplex offers the returns investors want, and you’ll start to get offers.
