HOA also property manager?

[Jason Hillier]

Hi folks,

New guy to real estate investing here. I've spent the last few years getting my finances and credit in excellent condition so I can finally get into real estate. Living in the Seattle area, I've had difficulty finding property that meets my investment criteria (for starters, good condition with good cashflows). However, out-of-state is showing many promising leads. Obviously, being an absentee landlord brings additional risks. Recently I've noticed some listings that seem interesting in that the community has a property manager with an onsite leasing office. It seems to me this type of setup could simplify things, and might be a good way to go for a first property. But I'd be grateful for advice from someone with more experience.

Here's an example property:
4-plex, 2bd/1ba units
Asking Price: $170k
Rental rate at leasing office (other identical units) is currently ~$575/mo.
Realtor summary shows estimated gross income at $28k/yr, estimated NOI is about $18k/yr

Both property and the community look to be well maintained, HOA appears healthy.

Some readily apparent risks:
*With 25 other identical buildings, it may be competitive to find tenants. (e.g. It seems to me a larger owner could influence the manager to direct tenants towards them and away from my property)
*The property management company has a terrible website, and it begs the question how competent and reliable they may be
*It is my understanding that I pay the management fee regardless of vacancy, however I'm not sure on that, perhaps someone who has had prior experience with these type of communities could tell me how they are normally structured.

I apologize if I don't quite have the RE vocabulary down, but hopefully you folks can provide some advice and help me get my start in real estate! (and hopefully I can contribute when I have gained some experience!)