All Forum Posts by: Account Closed

@Kelly Briley 

Kelly, what I'm gathering from your post is that you plan to "self-manage" from a distance with the help of this local guy who'll be doing it as a "side job".

My tip would be, as someone who manages a rental unit from distance, engage the services of a professional property manager. It will not be a side job for them and they will manage your property like a business. To find out how much they cost, you'll have to interview a bunch of them and ask them what the going rate is. In my market it ranges from 8-12%. By all means have a friendly ally there to keep an eye on things for you (I have my mom living nearby and if the property manager alerts me to a maintenance issue, I have her go by and make sure the maintenance gets done and the problem resolved).

The reduced cash flow you get from the property will be well worth the peace of mind knowing a professional is managing your property and you won't get middle of the night phone calls from your "guy".

@Daniel Miller 

Thanks, that is helpful. I'm gearing up to put an offer on a place and I'm trying to dig up as much information as I can to figure out my strategy. I've researched past sales in this apartment building back to 1994 so I know what the price trend has been, including 5 recent sales in 2014. So once I figure out which apartment in the block is for sale (I have someone going to look next week) I can get a sense of how much equity the guy might have in the place. The current owner is an out of town investor looking to divest. I'll be making a cash offer which might definitely help. Its a popular apartment building for investors, so I know it won't sit on the market for very long.

Thanks for giving me different angles to think about.

@Daniel Miller 

This is a lesson I'm trying to learn right now. Find properties that give me the ROI I am looking for and make an offer based on the numbers. I find I'm able to take the emotion out of that but sellers aren't.

Unless you're buying from banks, don't you find that sellers get upset and offended when you don't give them their price? I've explained to a few that my offer is based on my using the property as an investment, and that I hope they do get a better offer from someone who is not an investment buyer and sees the house for its "sentimental" value. But I let them know that my offer (verbal) will stand in case they don't and that I'm willing to work with them at a later date.

My first answer is option 3. But this was just a gut response.

Maybe what you need to do is analyze this house as if it were a new acquisition and do what the numbers tell you. Since this was your first house maybe you bought it as a home and didn't do any analysis at the time. Since you've learnt a lot of about REI and deal analysis since then, analyze with a fresh pair of eyes. Would you buy the property today if it was presented to you as a deal? If the answer is yes, get the rents up and keep it rolling. If no, sell and focus on the next deal.

I think one lesson learnt here (and thanks for reminding me of this) is the importance of including CapEx in your analysis.

Let us know what you decide.

Thanks for the post and all the responses. I learnt quite a bit. I'm getting better and better at analyzing deals but every time I learn something new. BP is awesome.

@James Park 

I've never heard of Jim Rogers before but I like the quotes! Is there a particular book of his that you would recommend? I'd be very interested to read it.

Congratulations.

@Richard Young 

I live in the US but invest in South Africa. Every market (country) is different and you will need good on-the-ground intelligence from someone who invests in your chosen market. Advice above to consult international tax attorney, get legal advice, etc. is super important.

All the best of luck. I'll be monitoring this topic because I think I'll learn a lot and get great suggestions.

Wendy

hi @Andrew C. 

welcome to BP. I'm from Sunnyside and agree that NYC is a tough market to be in. Some great suggestions above. Good luck!

@Tyler Haskell 

You can simply make it a condition of your offer that the house is vacant on transfer. You don't have to give a reason. Of course, the current tenant could put in a new application to rent the house from you and you could assess that application based on your tenant screening standards and requirements. Maybe you'll meet the tenant when you go see the place? Get your first impressions and see what you want to do.

The potential drama of your seller also being the HOA manager and a future neighbor... I'd give that some thought.

I would never tell you to not take risks (only you know your tolerance level). It seems like you know what the risks are, just research each one and, if you decide to do this, your eyes are wide open going in.