BiggerPockets

We have the opportunity to purchase a package of properties. Most will be SFR. My questions is... I have ran the numbers many times and wondering if any other BUYERS here use a property management company or what? Our exit startegy will take about 14 - 18 months. So management on the properties will be needed.

But, is it easier to just hire (sub) out the needed work?

Any help would greatly be appreiciated.

Thanks

No, we will not rent out any of the properties. We have the plans to do as little rehab as possible. But all rehab work will be performed by a construction company.

We will need basic property care, i.e.: yard work, property cleaning, running eletric, etc.

If we take every property as is, the package will total 173 properties.

All of the properties are in one geographic location. We do have the capability of utilizing one company. But I am alittle confused on how others on this site are getting this done.

I have looked into using a "handyman" type service. That will leave them capable of solving any problems onsite.

But I want to make sure that this is a smart move. As I read through this site. I have seen MANY people state that they are buying HUGE packages. So, I was hoping that at least one of them would spread the word.

Thanks,

Thanks for the advice.

What I have found very interesting. IS people have told me about purchasing HUGE packages. When I asked about servicing the properties, no reply. From everything I have looked at, this is the hardest part of the transaction. Keeping up the property for sale, while you are getting rid of them.

That is why I am looking for some advice from more experienced investors.

Ali,

Thanks for the advice. I have in fact talked to a management company that will also market to find buyers. When I compared the price for their services to using a "handy man" service, we would save lots of money with the "handy man." I do have a few more management companies to interview. So the comparison will continue.

But, THANKS for the info.

When we purchase the package all taxes, liens and anything else will be brought to date. All are through warranty deeds.

Thanks for the advice.

We are trying to stay away from having to hire any employee's. But that is an option we have considered. Our only concern with the hiring of employee's is, when the project is over they will no longer be employed. As we are not sure if we will attempt this venture again. (No descision will be made until we get into the first venture.)

But that is definitely a direction we are considering.

Thanks

Jeff,

That is what we have been working on. We have found that if the preservation numbers don't work, than there is no real return. We are interviewing companies that will manage the properties, but we are not finding one with numbers low enough. The company that you use sounds good, but I have yet to find a company like that in our area. I do have a couple of meetings with companies that are looking over our plan and are going to "quote" us a fixed price like the one you use. But we will have to see.

Thanks for the advice. As you know, it is all about the ROI.

Greg,

I am sorry if you feel like we are going in circles. I actually have received some good info thus far.

I will try to answer your questions:

1) Our exit is as follows, we will either wholesale the properties or auction them off.
2) The time frame has been set as to ensure enough time to sell all properties. We have the desire to sell them ASAP. But reality must be planned.
3) As I stated before, most properties will be sold as they are. We are not wanting to perform to much rehab, but some will have to be performed.
4) All of the properties are in one location. We feel, for our plan, that this will be best.
5) The seller has been vetted and we are very secure with the product.
6) The prices are being based off of a BPO or CMA all within the last 30 days. We know the locations very well, so we will be able to price the properties ourselves. No worries there.

My main object with this thread, was to get some info about how others are performing property preservation.

Thanks,
James