Sold rental units, banks paid off

[Arlan Potter]

We closed on the sale of 30 units this week. A 24 unit complex and 6 SFR's.

Couldn’t be happier. The units needed  quite a bit of work, class C- or some might say D.  

Easy to rent because poor people need a place to live. But the revolving doors just were not worth it any more. The sale proceeds cleared all our bank debts. And we still have a sizable “paid for” portfolio.  

We will now get back to potential flips, and new construction. 

[Nathan Gesner]

Originally posted by @Owen Thornton:

@Nathan G.

What is your opinion on management? Could you hire a property manager to control these headache-properties? Or would you say your best bet is to manage the complex (if even) properties yourself?

Do you think long distance C/Dish class investing is a profitable endeavor for someone with the time and drive to commit to?

It's difficult. A real good property manager won't want them because they are too time-consuming and there's no profit in it for them. James Wise works in Cleveland and is well-known for selling these properties that look really good on paper, but he refuses to manage them because they're too difficult. Any manager taking them on is probably desperate or ignorant of the reality.

I can charge 10% management on a house that rents for $1,600 a month. Ten of those houses will earn my company $1,600 a month. I would have to rent 20 apartments renting for $800 a month to get the same amount of income. The apartments will have parking problems, noise complaints, unauthorized animals, kids scratching the neighbor's car with their bikes, higher turnover, etc. Twice the number of units, probably 3x - 4x the work involved, for the same money. Lower class properties take more work with more problems and require constant attention that a property manager just can't afford.