property manager compensation
I have decided to start REI utilizing the Brrrr method. That being said, I have also decided to start by investing out of state because I cant find any Brrrr properties that would produce any COC return (obviously due to the insane prop tax where I live long island.) Years ago a life long friend of mine moved to a small coastal town in NC and has been bugging me to buy properties down there for years. I never really gave it much thought (due to my ignorance of REI) but now that I am seriously looking into investing, i'm coming across a lot of CHEEP properties (20k-30k) that need the regular face lift (15k-25k) with an AVR of 70k on average and the average rent is $800. After refi, the cash flow is roughly $400. This is just an example of what is available in NC where my friend lives. Now I said all that to say this, He is willing to find homes like this and do walk through's, work on the properties or find laborers who will do the repairs (He has his own construction business with a small crew) and basically manage the properties for me. What kind of compensation should I propose for a system like this? (FYI, If he works on the house, he will charge me like any other job he works on) I'm just curious how I should compensate him for the time taken out of his day looking into possible investment properties and basically managing them while I live in NY?
Also, If anyone has some long Island, NY investment suggestions, I would appreciate that as well. Thank you.
Matt C