How far is too far to own rentals?

Question

Just what the title says , what is too far to own rentals distance wise?

I'm sure that in some cases you might be able to own them out farther if they're in groups.

So , for those of you that OWN rentals (I can't say I want people that don't own any) how far is too far for you to own rentals?

Is there a distance if you have a PM?

Account Closed · Answer

Great. I'll pm you my email address.

Account Closed · Answer

Will, can you let us know how you qualify property management companies and the other team members? What questions you use to interview a property management company? What is it that makes you say 'yes' instead of 'no' to a certain PM. That could make this thread gold. I once asked Marshall Reddick how he screens his property management and team members: He said "most property management companies are terrible", so he "prays" that the property management company will be good. It sounds you have a better screening system than this to qualify a property management company. Please let us know about it!

Will Barnard · Answer

Josh, The questionaire you refered to does have many of the questions I include in mine, but does not give the answers you as the investor should look for, but it is a good start. As far as posting my workshop items, I can not give everything away for free and stay in business. I wish it was not the case, but those are the facts right now. There are many other members who have products or books which are offered for sale and they can not give all the info in those items away or they would lose all sales.

Joshua Dorkin · Answer

Mark - There is no "Secret" to finding a good PM. You just have to work hard and interview those companies working in your area. Use the questionnaire in my previous post and start asking questions. Make up your own, additional ones. You'll want to take thorough notes and you can then compare/contrast. I'd recommend asking for references as well. A PM won't give you bad references, so use your opportunity on the phone with these references to ask questions about procedure and process. You're not likely to get dirt, but you'll get an idea how the company works. Otherwise, once you narrow things down, I find it important to visit the office of the management company to see it in action. This should give you some idea of how they operate. Most PMs talk a great game, and when push comes to shove, many fail. I've personally seen it many times on my and other people's properties. I think you're operating under a smart strategy. Only invest where you can manage, and that includes managing management. If you can't get to a property on the other side of the country on a regular basis to ensure that your manager is doing his job, then you shouldn't be investing there. BTW - Your travel to visit those properties and check up is going to also eat into your profits. If a property cash-flows $100/month and you have to travel a few times a year by plane to visit and ensure everything is going well, then you've eaten up your profits. This MUST be factored in EVERY long distance investment property buying decision.

Joshua Dorkin · Answer

We've posted a questionaire on our forms page. See it here: Property Manager Interview Worksheet. It has come in handy for a lot of folks. Perhaps you could provide us with a copy that we could give our members, or at least share some points that we might be missing? I'm not discounting your 600+ posts . . . just thought you might be able to share such an important bit of info with the rest of the gang.

Mark Yuschak · Answer

I only invest in areas that I can self manage. And, being in Michigan, it's quite hard these days to do much successful investing at all. I tried using one PM company that talked up a golden story to get my business, then did nothing once they had a check from me. Until I know how to find a good PM, I'll continue to self manage.

Will Barnard · Answer

Josh, As you know, I am always eager to share my insight with others here on BP, hence the 600+ posts. The questionaire for PM's is very long to post here and as I mentioned, it is part of my educational workshop I have available on my website. Everyone is welcome to access it via my website.

Joshua Dorkin · Answer

Will - I just read your dialogue with Matty - can you share your screening techniques with the rest of us as well? I'm sure the thousands of members here would be interested in learning more -- I'd be interested myself to see if there are any good tips that I'm missing. I look forward to hearing some of them! Best, Josh

Will Barnard · Answer

Matty, I do have a great questionaire as well as a system Michael and I have developed over the years which has been very effective. We also are very demanding of PM's in how they run their business, as essentially, it is "our business". If they do not like that, then see ya! The information you are requesting can be found in our educational program, "investing out of state or your own backyard" which also includes forms and checklists which are derived from years of experience, mistakes, education, etc. The forms & checklists CD is the one we often give out at Rosie's events as well as other RE events. Since we have already met in person and developed a relationship, I will get that CD to you. Do I have your direct email? Are you on our join our investor list database? If not, send me so I can send to you. My email is found on our website.

Will Barnard · Answer

Got it. I will have it to you no later than tomorrow.