THINKING OF SELLING?
If you are thinking of selling a duplex, triplex or fourplex property,
the first step we need is your current financials on the property to
better understand how it is performing and what, based on the
current market, is its value. Because California now has rent
control now thruout the state, having this information is even
more important. Multifamily properties value is measured by cash
flow first and the property condition second.
KEEP YOUR RENTS UP TO DATE!
Go to www.rentometer.comto see what the current market rate
rents are in your location. The state of california now has
limitations on how much you can increase rent. Basilcally it is 5%
plus CPI. Check with your city as they may have a different rental
increase structure. Raise your rents yearly, idealy at the year
anniversary of the tenants moving in. If you fall behind, you leave
money on the table when you sell. If your tenants move out...great!
Clean up the unit, upgrade if necessary, and then rent for top
market rent!
If your thinking of selling a property that has 5 units or more,
which is then considered commercial property, I would need your
most recent Schedule E (supplemental profit or loss form) for that
property from your taxes, or if you have an income / expense
report that would suffice.
When we go on market buyers will want to see the last 3 years of
your Schedule E's,so might as well have those as well. You can
easily get these from your accountant, tax preparer, or CPA.
