Invest In One State, Live In Another
I am in the process of making 2 offers on 2 properties located many-many miles from CA where I live.
These are small properties: one 2 and one 4-plex.
When I start adding into the picture the charges of property mgmt companies, the deals become infinitely less attractive even for the long haul.
What are the ways to deal with the management without hiring the property mgmt companies?
Any advice would be greatly appreciated.
Thanks,
You don't say whether you have family or friends in the area where you are planning to invest.
In the absence of anyone in the area you could trust, I suggest you don't do this unless you are planning to hire a professional property manager.
Have you thoroughly researched the management companies in the area? Fees usually vary a lot even within individual cities. Also, the rates they quote are always negotiable! If you let them know that you may purchase several properties in the area eventually if you can make it work financially they are more likely to take interest in you than if you are simply going to buy one or two properties.
I agree with the above, the only thing worse than headaches close by is headaches far far away...
All these investors offer great advice! I was in the same situation as you. Total purchase price for 14 Units in three buildings was $130,000.Properties are in AWESOME shape, good\ stable tenants, after all expenses were paid, I would net about $2500 per month.Problem is, they were in my home state where I no longer lived.
I am a firm believer that no one will watch out for your interests like you will! Property management companies are great, but they also have other clients, other worries, other priorities besides your properties. I turned down this AWESOME DEAL because of distance from my investment. I am dissappointed, but not ****Must Reach Senior Investor status before posting URL's***her deals will come up for me, and ****Must Reach Senior Investor status before posting URL's***ake care
Thank you very much!
No, I do not have anyone in the area I can trust.
I will negotiate with property companies!