Property Owners ( Multi- Family)

[TorchMach]

Hello Everyone,

I wanted to ask if any of you own or have owned apartment units outside of the state you live in? Not, bought and moved but outside of where you have actually lived?

I am looking at some units in the San Marcos/Austin Texas area, and have honestly have always been against buying outside of your reach but the prices there are just so affordable. In regards to owning property we own a few units here in California already and manage ourselves, but this would be a first for me to have to hire a management company. Any of you have any experience with this subject? Tell me about it, I like to go in situations with as many bases covered as possible.

Thanks Guys,
Ruben

 

[ElscottHavoc]

Check out biggerpockets.com, its a good real estate investment forum with good advice on such issues.

I can't speak from personal experience as I have SFH property, but I do know individuals with out of state multifamily units with 3rd party management. Thus far, it seems to be okay for them, but the important part is finding a good area to invest in. Its much easier for property managers to be successful in areas that appeal to good tenants.

I personally do not have out of state units, I simply don't have the capital to put that control in someone else's hands and want to have complete control of the risk. That said, once I do reach a point where I want to take a step back and have it be even more passive, I'll have no problem researching out my area.

 

[jbs$]

If you are considering this and there are less than 12 - 15 up-scale units involved, you will lose your ass. This, from an old Banker.

 

[Thump_rrr]

I am an HVAC contractor and deal with management firms on a regular basis.
I can tell you that it is a crapshoot not only with management firms but with the individual building managers also.

Some have a good grasp on what is required in a situation and others don't which wastes huge sums of your money.

Are we talking small enough buildings which do not require in house staff such as 6 plex or are we talking larger appartment buildings which require a janitor/ custodian+ rental agent ie: live in caretaker?

 

[04svtterm]

i actually own property in Ca, TX, NJ, FL, PA as well as around the world. You have to find a good property management company. And accept that you may have to take less profit for the ease of mind. So far iv'e yet to have any serious issues. I've been pretty lucky, as all iv'e really had has been basic repairs. All the tenants have been screened and only had to worry about late payments for 2 of them in the last 3-4 years. Usually i travel quite a bit for work, so if i'm close by i'll drop by and say hello to the tenants and ask them face to face how things are and if anything needs attention. Big thing is to research where you are investing, you do not want to own anything near the "ghetto". Constant worry of theft, tenants not paying, squatters ect. I had that issue with 3 units in Reading, PA. sold that property as quick as i could. Find a good area. As for international properties are a completely different ballgame.

One thing i will say is, be smart. When things arise, use your head. Everyone is always trying to make an extra buck out of a sucker. Pay attention to issues and keep records of the events. I have a filing system just for my properties, which has every repair, incident, tenant info in it. all documents to cover my ass and to keep me in the loop of what's going on and that i'm not being charged for a unit repair which was repaired 2 months ago.

Can't treat it like a local site, as you will drive yourself insane. Best of luck.

 

[ElscottHavoc]

Speaking of record keeping and billings, I use Buildium. I use the $30 per month package which is good for up to 40 units. Really great at keeping organized.

 

[TorchMach]

Check out biggerpockets.com, its a good real estate investment forum with good advice on such issues.

I can't speak from personal experience as I have SFH property, but I do know individuals with out of state multifamily units with 3rd party management. Thus far, it seems to be okay for them, but the important part is finding a good area to invest in. Its much easier for property managers to be successful in areas that appeal to good tenants.

I personally do not have out of state units, I simply don't have the capital to put that control in someone else's hands and want to have complete control of the risk. That said, once I do reach a point where I want to take a step back and have it be even more passive, I'll have no problem researching out my area.

Thanks for the link to that website. I'm going to be over there all the time now lol

I appreciate the info, I would fly out of course and see the are personally before buying anything but the last thing I want is ghetto tenants

If you are considering this and there are less than 12 - 15 up-scale units involved, you will lose your ass. This, from an old Banker.

JBS, I knew you were going to drop some knowledge on this. An yes they range from 4 to 9 unit properties. Why would I lose on this? The mortgage would be so low, a vacant unit or two won't cripple it.

I am an HVAC contractor and deal with management firms on a regular basis.
I can tell you that it is a crapshoot not only with management firms but with the individual building managers also.

Some have a good grasp on what is required in a situation and others don't which wastes huge sums of your money.

Are we talking small enough buildings which do not require in house staff such as 6 plex or are we talking larger appartment buildings which require a janitor/ custodian+ rental agent ie: live in caretaker?

It will range from 4 to 9 units

i actually own property in Ca, TX, NJ, FL, PA as well as around the world. You have to find a good property management company. And accept that you may have to take less profit for the ease of mind. So far iv'e yet to have any serious issues. I've been pretty lucky, as all iv'e really had has been basic repairs. All the tenants have been screened and only had to worry about late payments for 2 of them in the last 3-4 years. Usually i travel quite a bit for work, so if i'm close by i'll drop by and say hello to the tenants and ask them face to face how things are and if anything needs attention. Big thing is to research where you are investing, you do not want to own anything near the "ghetto". Constant worry of theft, tenants not paying, squatters ect. I had that issue with 3 units in Reading, PA. sold that property as quick as i could. Find a good area. As for international properties are a completely different ballgame.

One thing i will say is, be smart. When things arise, use your head. Everyone is always trying to make an extra buck out of a sucker. Pay attention to issues and keep records of the events. I have a filing system just for my properties, which has every repair, incident, tenant info in it. all documents to cover my ass and to keep me in the loop of what's going on and that i'm not being charged for a unit repair which was repaired 2 months ago.

Can't treat it like a local site, as you will drive yourself insane. Best of luck.

That's my biggest worry, not having a good management company as I know that's who I am relying on the most. I'm willing to accept the 6-10% loss on paying for that service and know it's less stress on me but man I hope I find a good one.

Thanks guys for all the good info! Keep it coming