Properties are in a small town in Vermont, the population is fairly stable. We have worked with a property manager from the beginning. Good management but we need clarity about what we should expect or some ideas of how to turn this around!
I’m not sure what numbers would help but there are a total of 12 units, averaging about $1000 per mo each, highest is about $1300 and lowest is $850. It seems ok on paper, but there are just SO many expenses. The apartments are old – they were built around 1910 and 1920. Structures were ok according to the inspections, but we’ve had plumbing issues and substantial renovations inside and out on one of the apartments.
Out of 12 units, we have 7 currently rented. When we purchased, 9 out of 12 were rented. One is being remodeled after a tenant destroyed it & had to be evicted (expensive!) We had to do two other evictions because of poor tenants living in the properties when we purchased & covid issues. The property manager does an excellent job screening but wants a credit score of 650. It’s not a high income area. So I don’t know what’s realistic.
Not sure how to proceed. We are concerned that there will be ongoing maintenance with the age of the buildings. When should we expect a return on these investments? It’s been almost 2 years and paying three mortgages is not sustainable. Is there a way out of this or do we just hang on and wait for something to turn around? Any guidance/ideas would be helpful!!
