All Forum Posts by: Brian H.

@Paul S. at one time I owned three rental properties that were out of state. I've only been reading this board for a couple weeks but in that time I've gathered there are a number of posters here who invest out of state. It may work for them, but unless you have money to burn I would caution you to stick with your local market. Everything is more expensive when you're an absentee landlord. You can't afford to take a "hands off" approach to your investment just because you've hired a property management firm, at least not until you've worked with them a while and they've earned your trust. While I agree that a good property manager is a must, as @Chris Clothier mentioned it's still imperative that you visit the property regularly to ensure that your interests are being looked after, and this alone eats considerably into your cash flow, not to mention your time and energy.

Al, just curious how many of these GC's typically show up? And how many lose interest in the first few minutes of listening to your requirements?

I love your methodology and definitely am taking notes...but in my area and in my experience it's an act of God to even get the GC to show up to bid on the project.

Joel, excellent point. This was a case of neglect; I know it wasn't intentional and I told her that, but I also made sure she knew why I felt it was in my best interest to work with someone else. It's the second time I've had to do that with this listing, btw. Perhaps my expectations are too high. I'm starting to wonder if I need to move back in and try to sell it myself. As I said in my other posting, I may try to rent it out again as well, so at the end of the day the fact that this happened might be a good thing; I guess I have more options now.

J, I agree. Ultimately it's my listing and my responsibility. I was careless.

I hear you Joel. I should have confirmed, though for what it's worth the listing has undergone more than a couple price changes and each time she specifically asked that I follow up with an email.

Ned, I've already talked to her. Gonna go with a new realtor; I stopped short of telling her I want her to pay my mortgage for the month that it was at the wrong price. I'm pretty p'd off.

Thanks both of you for your replies.

If you had your home listed at a certain price and discussed with your realtor a price reduction, then followed up with an email to her confirming the new price you wanted it listed at...and then a month later pulled up the listing and saw that it was still listed at the old price...would you fire the realtor?

This is what just happened to me yesterday; I guess I need to do a little better follow-up when I request a change to a listing.

Jon, I'll take it off the market before I try to refi. And yes I think I will start with the current lender, if I go that route. I spoke informally with my banker in Louisville and she echoed your opinion that it would be expensive to refi, but if I do decide to rent it out for a few more years I think it would add to my peace of mind to get a fixed rate. Plus if I can get a little cash out of it I could make some improvements that I think would get me more rent. In particular, I'd like to convert the walk-in attic or the basement into a fourth bedroom. Not sure about the code requirements yet, it may or not be an easy conversion but I plan to ask the building inspector when I go out there next weekend. At any rate, thanks for your input.

Michael, you're right in that I can carry this house for the foreseeable future, but of course I want to alleviate that problem ASAP. I've considered using a manager but for one property it never seemed cost-effective. But, I think you're seeing the heart of the issue, which is that managing property from out of state is stressing me out and distracting me from my larger investment goals. So, point taken and I'll look into it, thank you.

It's a 3/2. No garage. It's actually on a pretty nice street; my immediate neighbors are the only problem residents that I know of.

I feel like I could get $700 in rent but more than that would surprise me.

Here's a link to the listing:

http://www.realtor.com/realestateandhomes-detail/403-Elm-St_Clarksburg_WV_26301_M48739-27767

Here are the facts:

1) Bought home as primary residence in Clarksburg, WV shortly after I was transferred there following 9/11. Was an emotional buy but I don't think I overpaid for it. $71,500 in early 2002. The principle balance is currently about $56,000.

2) Took a job transfer early 2003 and subsequently got divorced. I ended up with the house in Clarksburg and as it was already rented out, I opted to keep it as a rental, even though I live six hours away. Long story short, the last family I rented to did a tremendous amount of damage to the house and I ended up putting about $20,000 into it to get it back in move-in condition (May-Sep 2011).

3) House has been listed for sale since Sep 2011. Two different realtors, lots of showings but not one offer. The house started out at a listing price of $84,500 (which was in keeping with comps) but is now listed at $64,500 (I think). Both realtors have told me that the problem as they see it is two-fold...a) the neighbors, who are kind of trashy people on welfare and their house is an eyesore, and b) the house is in a flood plain.

My mortgage payment is only $541 on a 30 year adjustable rate. I'm thinking about refinancing it but only if I continue to try to rent it out, which is not my preference after what I went through with the last tenants. However, I do feel like I've learned some hard lessons and could do better this time around, and I'm pretty sure I can rent it for $650-700. Still...my preference is to sell. Ideally I sell the house, albeit at a loss, and start over fresh in my hometown.

As I've said, I've considered trying to rent it out again. I've also considered marketing the home to investors, knowing I'll only get pennies on the dollar. I've already taken a bath on this place and I'm almost willing to come to the closing table with thousands more out of pocket just to get this place off my books. And as a last resort...I'm considering just moving back into the house so that I can better control the situation, make improvements, save on living expenses, etc. until it's sold. For personal reasons that is an absolute last resort.

If you've read this far, thank you. I'm trying to keep emotion out of the tone of this post but I seriously need help. I've been carrying this place for well over a year now and it's become a serious thorn in my side. Thank you for any and all suggestions.