Hey - In March, I purchased 2 4-plexes in Las Vegas as an investment. I worked with a realtor, got advice, and got inspections. I live in CA, and am paying a local property management company to manage tenants and repairs. Both properties were fully rented. Based on the inspection, etc., I planned for around $15,000 in basic repairs up front, with another $5,000 per unit for upgrades when the units turned over. Since purchase, in addition to the basic repairs, I've had 2 evictions, one of whom trashed the unit, for around $22,000 in additional repairs. Now the PM is telling me we have mold in one unit and the laundry room, plus cockroaches (another $2,000 to fix). I'm totally new at this, and this is not what I expected in the first few months of ownership.
Questions: Is this just what to expect from buying rentals, and (regardless of expectations), what can/should I do?
I don't have the money to keep repairing at this rate (especially being down 2 units). Should I try to sell without repairing (taking a loss even if I could find a buyer)? Is there a possibility to get another loan for rehab, fix everything up, and then try to sell and pay back the loan? Do I hang tight and pay out of savings, hoping it's worth it in the long run?
I'm also open to paying someone for a second opinion outside of my property managers on what needs to be done. Help, and Thanks!
