Background
The client had inherited this property from their parents and were using property management to run the books.
The Problem
The property needed a lot of work, time, and money. The rent was okay, but they had not kept the rent up with the market. They were still managing the 13 tenants themselves and had even become friends with the tenants over the years. Management was not doing a great job, so it was still a lot of work for the owners.
The Solution
The Crocker | McKean Team analyzed the lease comps in the area and saw that they were half of market rent on their lease rates and they had a vacant piece of land that was not bringing in income. The team showed them multiple different 1031 exchange analysis and saw that they could bring their income up around 100%.
The Results
After 8 months on market and about 6 offers, the team brought a buyer to the table who offered 100% of list price, cash. He was also willing to let one of the owners stay for 6 months rent free.
The team did a 1031 exchange into a brand-new Dollar General as well as a rental home in the area and doubled their income.
