All Forum Posts by: Holly N.

I have 2 multi units and one single family home

 How do I go about finding a reputable PM should I decide to hire someone else who truly has my best interests? I know there are interview questions to be asked but any feedback or PM recommendations are greatly appreciated if I decide to take this route

Thanks everyone for the assistance. Yes I will be the first to admit that at 28 I dove head first into buying 3 rentals out of state in Chesapeake portsmouth and Norfolk, VA. I live in Winston Salem,NC so when I created the account I used Virginia beach as my location as that is where I am from. Needless to say the properties are as follows: 8 unit, 6 unit and 4 bedroom house.

"@JD MartinI think you made an excellent point that even though I am not producing cash flow, I am building equity. 

Also to reiterate my PM concerns I was looking at several invoices for one of my properties and here is what I found to illustrate the miscellaneous repairs that seem overpriced to me: 

I can provide more details after I look at the numbers more but these are just a few examples of miscellaneous repairs that are

Adding up...

@Troy Fisher thanks for the advice and support. I feel like I got myself into this mess and I'm going to have to get out. I don't know that my financial planner has the grounds or jurisdiction to request a full accounting? Perhaps I should involve a cpa for such inquiries? I did some research earlier. Perhaps there is an issue with me relying solely on documents provided by PM company stating rental incomes etc vs actual copies of leases or other info substantiating rental income)? 

@Troy Fisher lol @ tax deductible weekend (good point)! So yes I have done that a few weeks ago. Came to PM asking about lack of cash flow maybe I wasn't pointed enough in my questioning and yes I'm easily intimidated by my PM and her staff (who often treat me like crap or act irritated when I ask questions or want to argue a point) 

Needless to say, I was told what I wanted to hear and it all adds up on paper  but the question remains of why I still am not profiting rather than maintaining. There's a hole in this ship and I need to plug it soon before it bleeds me dry. I really think it's excessive small repairs and trouble tickets that are eating away at my rental income. Maybe I do need to go ahead and call tenants or visit and present the findings to my PM??.

@Troy Fisher I am going to be honest and say I do not visit the properties like I should and when I do I only walk around the exterior of the 5 and 8 unit apartment building and I do not talk to my tenants or see the inside of the individual units. The same goes for the rental house I own. I have always been afraid to talk to my tenants. Ignorance is bliss. My heads in the sand! As the owner I have a right to talk to my tenants! I guess I'm worried my PM will be offended or say I don't trust her. That's no excuse  for me not to do my part what if my tenants say the work isn't happening or they are being treated poorly by my PM? What recourse will I have? Is that grounds to fire? It could be the tenants word against the PM? 

@Patrick Connell I think it's a combination of several factors leading me to the conclusion I either 1. Invested poorly 

2. Have a PM who does not have my best interests at hand 

  I purchased the properties because my financial planner kept encouraging me to invest in real estate to diversify my portfolio. I went in expecting to make a positive cash flow thinking my PM could handle the rest. My lack of involvement has allowed me to be unaware of repairs and whether or not they are even happening. I don't want to sell because my mortgages are 1/4 paid and I'm 32 so I will have them paid off in time for retirement although some may say I should sell them and save my a$$) which I almost sold one property last year with the  realtor who sold them to me but buyer backed out and she was representing both myself and the buyer(dual agency). I'm glad the buyer backed out because the  realtor was going to have me do owner financing for the buyer in the amount of $46k over 4 years and I was not comfortable with that . There is a pattern of me not doing my research and being naive in the world of investing. I want to keep my rentals so I can have cash flow once the mortgages are completely paid but I would like to have cash flow now since the mortgages are 15 years from being paid off 

"@Michael R.

     Thanks for your reply! I have not listened to the podcasts or used the calculator yet.  I purchased these properties under the impression and being shown on paper that they would provide me with positive cash flow from a well known/ credible realtor. (Whom I now question) I feel like I jumped in head first not knowing what I was getting into and I'm getting in over my head as reality is sinking in. What can I do to make sure I'm not being ripped off? It all adds up on paper but the fact is financially I'm no better off than 5 years ago when I purchased the properties and the realtor who sold them to me told me I won't make any money off of them until the mortgages are paid! Which is a different story than when she told me they would be a good investment and would produce cash flow after I purchased them) I should have posted this topic years ago....

"@Dax Middlebrooks

Thanks for the reply. My primary concern is that with me being out of state I do not know first hand what is going on with my rentals and my PM has lots of "small invoices " that are adding up! I feel like I'm being taken advantage of but my PM keeps telling me I have to keep up with repairs to keep my units rented or to attract the right kinds of tenants. How can I increase my trust or her credibility with all of these small or sometimes not so small repairs when I'm just taking her word and not talking to the tenants myself or requesting pics of all repairs?? 

I live out of state and she has been managing my 3 investments for several years. Even when they are fully rented, I rarely show any positive cash flow, rather I just stay afloat after mortgages are paid! I feel like I should at least be making some cash flow, but after the mortgages are paid, PM collects her fee (8%) and any repairs,maintenance, taxes or insurance are paid, I'm left with no extra income. something seems amiss here and when I ask PM she says this is normal and to be expected the first few years of owning rental property. Pay PM can backup the income and expenses on my monthly owner statements, but after 5 years of owning and only being able to say I'm breaking even, something is just not right here!