Fresno CA , market conditions? Good Property manager?

Question

I may have a lead on a rental property in Fresno, CA  that I am looking to purchase. I am hoping to talk with anyone who is in this market. Also interested in a good property manager and any further information anyone can provide me with about Fresno. Thanks!

Tom Conant · Answer

@Smitha Sandasani

With rents as is, I am losing approximately $500/month.

That said I didn’t purchase the property as turn key.  I purchased it for where I believe I can take it.

It’s in a great area and rents when I bought it were $1750.  I believe I can increase rents to around $2850, and I believe I can use the existing footprint to add an additional unit that could rent for $600, for $3450 total.

I purchased the property off market for $250k.  I’d say that makes it a 4-5 cap.

Smitha Sandasani · Answer

@Dustin Peters we self manage our property. I found oak tree property management and Grubb Reality that we inquired last year. Both seem reasonable, quality information.

Yue, Dustin - its nice to see Fesrno investors on BP!

Dustin Peters · Answer

@Drew Sygit thank you that is extremely helpful! Great advice. I will checkout your series. Thanks so much.

Drew Sygit · Answer

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, so they don't know what they don't know!

Landlords mistakenly ASSUME all PMCs offer the exact same services and operate the exact same way, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services.

This also leads them to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each don’t cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Smitha Sandasani · Answer

Congratulations Tom! Just curious how is the cap rate for the triplex, and if you are finding new tenants or existing tenants continue.

Yue Lehman · Answer

@Dustin Peters

I personally have not used any PM in Fresno but have spoken to a few, and have family members vouch for one that they use. Message me if you're interested!

Tom Conant · Answer

@Dustin Peters

I just purchased my first triplex here.  I live here as well.

Many are more better resources than me but feel free to message me with any questions.

Fresno CA , market conditions? Good Property manager?

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