There comes a time when a real estate investor wants to transition from owning single-family rentals to managing apartment buildings. The question that we need to address now is how to sell these rental houses for the most money possible. If you want to get the highest price possible for your investments, then you need to convert the rentals to sell them as single-family homes. This article is going to show you how to convert your rental homes into homes you can market to a homeowner.
Why You Should Convert Your Rental Homes
It may be tempting to clean up the house, slap on a fresh coat of paint, and then place a For Sale sign in the front yard – but if you want to sell the house to a homeowner, more is going to be required. There are quite a few reasons why a rental investor should convert his rentals before he sells them. Consider these main reasons:
Increases your buyer base. The more potential buyers you have the quicker and easier you will sell the house. Right now your primary purchaser will be another investor. Why not triple your buyers by making your property appeal to a homeowner.
Higher sales price. Rental properties are valued based on the capitalization of the net operating income. Investors set a desired return and they will not pay more for a property. If you sell a home to a primary owner, on the other hand, then you can price the home based on the quality, condition and features not just the rental income.
Steps to Convert Your Rental
If you want to get the best price for your single family rental home, then there are a few steps you need to take to maximize the market value.
Getting your rental ready to sell as a primary residence takes some attention to detail. Compared to the increase in the sales price, the cost to convert your rental will be minimal. When it comes time to sell your rentals, every dollar counts. The higher your sales price the more money you will have to invest in a better income-producing property.