I live in a HCOL area, purchased a duplex a couple of years ago. The property is surrounded on two sides by a neighbor with a house and 2 acre lot in a town with not very many available lots. On the other side of me is a public pathway and a smaller roughly 6-10 unit luxury apartment building with a couple shops on the bottom.
Last year on the other side of this neighbor an old house was torn down with 2 $1.6m+ homes being subdivided and built.
This neighbor recently came into some money and has approached us a couple times to let him know if we ever wanted to sell and recently brought it up again that he is very interested. We didn’t intend to sell, made some minor improvements and TLC to the property getting us increased rent of ~$3,200 for each side. Good tenants working out well for us. But there is always a walk away number.
When we purchased the property it was appraised 20% over what we paid.
Trying to figure out what premium to put on the property over market value as owning our lot could let him bundle the whole property to a developer.
TLDR: Neighbor owns bigger property, wants to buy our property. How much of a premium should we put on it?
Neighbor wants to buy our duplex
byu/IcantbelieveitsnotQE inrealestateinvesting
Posted by IcantbelieveitsnotQE
1 Comment
Have you asked him how much he’d be willing to pay or has he indicated that at all? Also do you have a number in mind that would make you feel comfortable walking away from it? What would you do with the cash after ward? Do you have any plans?