Updated about 19 years ago on . Most recent reply
Out of state Investor
I live in California and am thinking about investing in a fourplex in Utah? My fear is my responsiveness to the rental. I've been told to hire a property manager, however, they can suck up much of the profit. Those of you whove invested outside of your state, what has been your experiences?
Most Popular Reply
dkdk100,
It is very difficult to justify a property manager on any type of leased residential property (SFR, 2-Fam, 3-Fam or 4-Fam). The numbers just don't support the expense. Of course, if you live out-of-state you have to have someone watch the place.
One option you may consider is to ask the current tenants if they would be interested in buying the place within a couple of years. You could turn your lease into a lease/option and then tell the tenants that they have to take care of the property and fix anything that costs less than $500 to fix. You are still the owner and you will have to fix any big-ticket maintenance problem, but that rule will cut out 99% of the nuisance calls from a tenant and get the property out of your hair in a couple of years.