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It's 5 hours from me so not really an option.

I was just thinking I'd need to factor in their costs as part of my property evaluation to determine it's a good deal.

Thanks!

Hi,
I believe I'm in the final stages of making an offer on my first investment property. One of the things I'm not quite sure about is when do I line up the property management company? Should I be talking to them now - even before making the offer? Do you sign a contract with them now that gets them engaged the day I close on the property? Any advice on dealing withe PMs would be great.

Thanks!

Hi Roni!
Thanks for the advice. My goal is really as a long term investment. I'm hoping to be able to make a few bucks on monthly cashflow but ultimately I'd like to own these properties free and clear in say 10 - 15 years. If the markets right at that time, I'd cash them out.

The more I hear it sounds like the HELOC is the way to go.

Thanks!
MM

Thanks for the support guys! I think I'll be all set now after reading your feedback. I have every intention of purchasing property - not this week but definitely in the next 2 - 4 weeks. more than likely we'll pay cash using a HELOC on our primary property.

One last question....my plan was to setup an LLC for this property. How quickly can that happen? Do I need to have that in place in order to make the offer on the property? My thought was that would require some expense in setting it up - and if the offer is not accepted it would be lost. Ideally, I would like to have an LLC for each property I purchase so as not to put an property at risk due to the others.

Thanks again!

So after a year or more of reading, listening to tapes. setting up my team of accountants, mortgage brokers, building a reserve of cash and then stalling because of fear....I enter the game this week. I'm meeting with my buyer's agent to view about 10 properties over 2 days.

I'm looking for advice on on what to say to my buyer's agent and more importantly what not to say. Particularly, do I want to tell him this is my first investment property? Do I want to tell him that I'm the president of a company? How much information do I release about myself? I've read books that say....be a straight shooter with everyone you deal with in REI since it's those relationships that will make your future deals even more successful. Other books say don't tell the broker too much as they may (purposely or accidentally) let that information slip to the seller or the seller's agent.

What questions should I be asking him to determine this is someone I want to work with? Will he be looking for some kind of contract that locks me in to using him? Any advice on what I can expect this week will be greatly appreciated.

Thanks!
-MM

PS I'll post a recap of my experience once it's over (provided I survive it of course :D )

Thanks guys for the great info. I have a call into my mortgage guy to see what the rates would be for a HELOC vs a straight mortgage on a non-owner occupied place.

My current situation is that my home is valued at $650k and I've got $275k. I'm only 5 years into my 30 year mortgage and on schedule to pay off in 16 years.

I'm going to be buying this through an LLC unless otherwise advised.

Thanks!

My home mortgage is locked in at 5.5 for 30 years. Not sure I could get anywhere near that on something that is not owner-occupied.

I've lined up my first property that will cost me $85,000. I'll be putting down 20%. This is a 3 unit property and it will not be owner occupied. I have about $350k in equity in my primary residence. Should I just pull out some of the equity from my house to buy this place or should I get a separate mortgage for it - knowing that since it's not owner-occupied I'll be paying a higher interest rate?

Thanks
-MM

Agreed....I'm staying away from that one.