Fellow landlords, I have a question for you! (tenants, rental, house)
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I don't like where I'm living, and I want to move to another state. The issue is that I have some rental properties where I'm living now. I could either sell them all and move, or I could hire a management company to take care of them for me. Now, financially for me it's a tossup either way. I own them outright, so I'm in the position where I could sell them and not be particularly concerned about the real estate market now, and not mind if I have to wait a long time for them to sell.
So, putting aside the issues of the current real estate market et cetera...what do you think is the better way to go -- sell and start over with new properties in the place I intend to move -- or become a long distance landlord and have to deal with the problems that arise from that?
I suppose what I'm most concerned about is the fact that I won't just be able to drive by on a whim and make sure my properties aren't trashed or something. How much luck have those of you using management companies had with them being very good at taking care of your houses?
My company manages several units to out of state owners - also I have a few who are out of the country. We have a limit to what we can spend without owner approval. We do monthly drive bys and we charge between $80-$120 per month. They do pay for advertising, but there are no hidden costs. We also get a start-up fee of $180, you receive a monthly cash flow statement showing all income and expenses, you receive a cash draw along with your statement, and we keep $100 in your trust account at all times, unless you choose to keep a higher balance.
I would recommend a good property management company. Interview 3 and ask for references.
My company manages several units to out of state owners - also I have a few who are out of the country. We have a limit to what we can spend without owner approval. We do monthly drive bys and we charge between $80-$120 per month. They do pay for advertising, but there are no hidden costs. We also get a start-up fee of $180, you receive a monthly cash flow statement showing all income and expenses, you receive a cash draw along with your statement, and we keep $100 in your trust account at all times, unless you choose to keep a higher balance.
I would recommend a good property management company. Interview 3 and ask for references.
Good luck.
That's actually less than I was imagining. Thank you for the input!
I was a Landlord having a proeprty taking care of overseas in Europe. It was a big 2 yera old property. I've sold without even being in it again after 4 years of having it rented. It was a great experience and I made alot of money from the renting and the value since I waited untill the market went up. Not entirely because I wanted to but in Europe some cities have laws that you have to own the home for 3 years before you can sell it.
I don't like where I'm living, and I want to move to another state. The issue is that I have some rental properties where I'm living now. I could either sell them all and move, or I could hire a management company to take care of them for me. Now, financially for me it's a tossup either way. I own them outright, so I'm in the position where I could sell them and not be particularly concerned about the real estate market now, and not mind if I have to wait a long time for them to sell.
So, putting aside the issues of the current real estate market et cetera...what do you think is the better way to go -- sell and start over with new properties in the place I intend to move -- or become a long distance landlord and have to deal with the problems that arise from that?
I suppose what I'm most concerned about is the fact that I won't just be able to drive by on a whim and make sure my properties aren't trashed or something. How much luck have those of you using management companies had with them being very good at taking care of your houses?
We are in the same situation. We have decided to sell and carry paper. That way we will still realize a monthly income ( 30 year note) and that income
will be viewed as monthly income ( this helps immensley when addressing
the capital gains issue. ) You would only be taxed on the principal and then
that would of course be minus your orig purchase price and any improvements made prior to sale. Very tax friendly strategy. Of course the market sucks and we are not willing to "give " the property away. But we are doing zero down, owner finance on 5 individual townhomes. Many diffrent ways to "skin a cat" if you own it outright.
We are in the same situation. We have decided to sell and carry paper. That way we will still realize a monthly income ( 30 year note) and that income
will be viewed as monthly income ( this helps immensley when addressing
the capital gains issue. ) You would only be taxed on the principal and then
that would of course be minus your orig purchase price and any improvements made prior to sale. Very tax friendly strategy. Of course the market sucks and we are not willing to "give " the property away. But we are doing zero down, owner finance on 5 individual townhomes. Many diffrent ways to "skin a cat" if you own it outright.
I'd thought about that, but it just seems like a big hassle...especially if you end up having to do a foreclosure and repossession. I hope you have really good luck with it though!
I'd thought about that, but it just seems like a big hassle...especially if you end up having to do a foreclosure and repossession. I hope you have really good luck with it though!
Repossession is not always a bad thing. Think about the income (principal and
interest that you would have already received and now comes along the opportunity to do it again. And the property values may have even increased
at that time.)
Repossession is not always a bad thing. Think about the income (principal and
interest that you would have already received and now comes along the opportunity to do it again. And the property values may have even increased
at that time.)
I've bought houses that were foreclosed on. They're generally NOT a pretty sight, after the annoyed tenants take out their anger on the property. The last foreclosed house I bought had holes sledgehammered in every single piece of sheetrock, the toilets and sinks pulled off the wall/floor, the kitchen cabinets pulled down and smashed, all the windows broken, and the copper plumbing and HVAC stripped from the house.
Red, I live in Asia & own a few homes that are rented in my birth city.
I used a BAD agency and am having better luck on my own living 1/2 a world away. I have a contract with some people who fix any problems.
It works out for me.
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The last foreclosed house I bought had holes sledgehammered in every single piece of sheetrock, the toilets and sinks pulled off the wall/floor, the kitchen cabinets pulled down and smashed, all the windows broken, and the copper plumbing and HVAC stripped from the house.
