It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

. :-)Probably a good market for using the same realtor to buy and sell  @Caleb BrownYa Bill I was going to point that out.. this is common in the mid west or low value asset areas.. the other fee's are RE brokerages version of Lenders JUNK fee's its just an add on fee..

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

I wanted to add one piece of advice in regards to capex is if you decide to make an offer make sure you include an inspection contingency on your offer and pay for a complete home inspection;- it will help identify potential future problems (for example if the roof is 15 years old and they put on 20 year shingles you should plan for a roof in the near future)-any major issues that are identified can sometimes be used a bargaining chip, possibly the seller will contribute money to fixing those items -you can use the inspection to dial in an appropriate number to budget for repairs -Anything can go wrong but the report might give you piece of mind knowing that everything is in good repair and well maintained.

You can 1) raise the normal rent price at time of renewal/addendum; this is definitely recommended now that you are adding a tenant to the home and a dog, plus the property is already below market value (could be worth checking out services like Rentometer or Rent Range to get a precise idea as for where your unit pricing ought to stand). 2) Add on that pet deposit along with a monthly pet fee (so long as this isn't an ESA or service animal, and as long as your state doesn't dictate a different process for this).

Add on taxes, insurance, water/sewer, lawn care, professional fees, any house utilities and you'll be way above your estimate.With such low rents and such a high cap rate, this is likely to be management intensive with higher than usual R&M, vacancy, etc.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.