Low income area Landlords !!!! What's going on? Want to hear recommendations and tips on proper management of…
Low income area Landlords !!!!
What's going on?
Want to hear recommendations and tips on how to properly manage assets in more difficult areas.
What to do with the management company (believe it to be the key factor in influencing the nature of the transaction)? Specific tips?
I would ask that anyone who answers has ** significant experience in investment management of the above type. **
There is a deal on the chapter of 7 properties, all of which have been rented for 7 years to those tenants, a total rent of 4500 dollars a month. Purchase Price 120,000 USD. This is an off market deal directly with the seller I have on contract, no broker or wholesaler trying to push it.
Whoever it sounds to you doesn't make sense here, be careful not to work on you can't be - please spare me because I hear it a lot.
I am not new to the field, just considering this investment and looking for recommendations from companies with experience with the above investments. I should also point out that this is not an investor escort by me.
Thanks in advance for the season and good week!
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Hey,
I have been dealing with 3 for years for low income, section 8 strongly recommends moving property and talking to the tenants themselves !!!
On:
1. Problems with the property (structure itself, electricity status, plumbing, roof, liquidity, heating / cooling if there is, windows, basement if there is etc.
2. Street status and neighbors (drugs, noise, etc.)
3. What repairs did the management company make during the actual years !!! And not in the report
4. How long do you intend to stay on the property and whether it's good for them.
Emphasize about the tenants' deposit if it still exists and will pass to you…
Otherwise you will have tenants without a deposit…
And there are still quite a few things to check as everyone has noted
Good luck
I don't have as rich experience as others present here, but I recently looked at a 8 property deal, reminiscent of what you indicate (not war zones but low income).
After inspection I discovered that some of the units do not have a condition that someone lives there and they are probably a drug station. The tenant has an interest in paying on time of course and not complaining about anything so that no one will jump in to visit and disturb him, but one day the sheriff will come and then the problems will start…
If you do all the usual property-buying inspections, payment reports, etc., and you take into account everything we mentioned here, and headaches, then good luck?
Sounds like a war zone, recommends making sure at least 6 months back that tenants are paying, in such areas it is very difficult to house apartments and especially with a normal tenant, there is a lot of spending on repairs
If you know the seller early acquaintance (so implied) and you are already walking around these areas, otherwise the deal would not have reached you, and you have experience in real estate and checked that everything you wrote down does in reality take place…
So it sounds like you have a great deal on hand, and in those numbers there is also room for an asset manager / holding company if you are not interested in taking care of them yourself…
And in the worst case, it sounds like the price is low enough to get rid of them if you have to.
Just a little advice, I would try to talk to all the tenants before, it is better to start with the right foot and if not, then you will understand that it is not for you
As a real estate investor who has been operating for over 5 years in low income (GA) areas with almost 100 transactions in this field I see that the management company (and the contractors who work with them) is 80% of the matter 20% is lucky 🙂
These areas have a lot of potential for area restoration and value increase in the long run and once you have a diverse portfolio with properties even in higher quality areas it is fantastic. Treat it like a stock portfolio and these are the stocks with the highest return but also the higher volatility. The fact that these tenants have had all the properties for 7 years is very surprising and indicates that they manage the properties well and are probably also willing to "give up" occasional payments just to hold the tenants which is not a bad strategy considering the costs of replacing tenants. All in all that once you take the deal it is not certain that they will continue to stay with the management company and pay in the payment ethic that the management company will dictate and there is a chance with little eviction. That's why it's important:
1. Find out who is managing the assets and you may want to work with their management company.
2. Expect return volatility and be prepared with cash on hand for evacuation / repairs and turn over cases. Seven assets can generate insolvency points of time (even though you are fine every year) so it is important to evaluate.
3. You have to understand that tenants of this type are hit or miss and there is a lot of luck who goes into the apartment. No matter how good the paper is, they can always be surprises. There will be tenants who will remain for many years and may or may not pay after a few months.
4. Again, do not build on tenants who will remain and income is fixed like clockwork.
5. Ask to see a rent roll and make sure at least 3 months back of rental income. This will allow you to see the payment ethics, delays or delays and know what to expect and prepare your management company.
6. Consult with your management company a bit about the area and find out if this is an area that is difficult to rent and whether it is an area with lots of turn, whether it is a low income or no income area. The second will only cause you financial loss and headache. Should be very picky in the low income areas but the potential there is the highest and I buy and accompany investors in these areas all the time.
7. If you do not intend to hold assets for at least 5 years you should not “try” because the learning curve and experience in these challenging areas until stabilizing takes time but in the long run pays off.
Successfully.
It all depends on how much you are willing to pay for the headache.
Hi, I'm in South Florida, I have a management and operations company, we have about 100 "doors", I would love to advise you if you are in the area where we operate.
I run 35 units like this, there is a lot of dealing with cash and repairs
You didn't ask anything concrete so if you want to dive into deep conversation about my day to day, I'd love to babble
Missing details What kind of area it is What the average rental time it takes to find a new tenant what is the composition of the population what about the School District crime etc? Without them it is impossible to decide and with these the decision is already taken for granted. My opinion ..
As one like you who makes a lot of money… what do you need this headache… Buy stable homes without a headache less return at 150-200 thousand. High level 😉
I would stop with the gig
The assets are managed independently by the owner.
This is about 7 singles.
Ask the management company for a report.
If this is a serious management company, it should work with a system that will give you the full history of assets.
Payments, repairs, etc.
You can learn a lot about the nature of the properties and tenants.
Successfully !!
There is a deal going on, just make sure you enter a rental, that no other delays will start dealing with evictions.
A management company is critical here and there who know how to manage these areas.
Talk to me tomorrow with love :)
120K for all 7 assets?
Successfully!
Ask the seller for proof that the tenants did pay and pay on time.
You will also check the status of the homes. If it is about 4500 dollars and seven properties there is a good deal that will go for repairs of 7 homes.
You must make sure that the management company has experience in managing low-income tenants and that most of its activities are with such tenants.
If the properties are leased to those tenants for 7 years this is a positive figure for you but I would check with the seller the source of the tenants income as well as their rental income, I evacuated a tenant from my property in the neighborhood quite hard after living in the property for more than 6 years due to a technical problem Her has not been in her account for several months.
Good luck.
Sounds a rare deal What exactly is the question?
Is it multi 7 units.
Family Singles.
?
Could be, just need a property manager from the same area and Chat Gunn