Researching Realtors / Property Managers

[Matthew W.]

Nothing against the contacts I've made here on Bigger Pockets so far, but I've been googling realtors and property managers in Indianapolis to do some research as I'm planning to start running numbers on a few investment properties. Looking for guidance on the right questions to ask and/or recommendations on property managers and realtors in Indianapolis you've worked with that you've had good experiences with. 

The goal - assuming the deals are there - is to buy my first investment property or two this year, then 2-4 next year, and then 4-8 the following year. Ultimately want to get to around 10 cash flowing properties over the next 3-4 years and then evaluate whether to continue building up in the same city or expanding into other areas.  I plan on holding long term but want anything I acquire to provide a reasonable cash-on-cash return from day one. Also need to keep things as turnkey as possible for at least the next few years.

My plan right now is to identify a few different realtors to connect with and start evaluating the deals they send me within my buying criteria, and then ask them for recommended property managers and lenders to start interviewing. I'm also considering connecting directly with property managers as the starting point and evaluating any properties they already manage that are for sale. 

Once I get started, want to get settled on working with a solid team over and over. Hoping to figure out how to identify good players from day one. Any help in figuring out how to do that - beyond what I've already read in the books - is appreciated.

[Frank Pyle]

I’m in Indy a lot with out of state investors doing long term rentals, and the fastest way to sort the good from the average is to start with what happens after closing. I’d ask property managers what their average days to fill, their current delinquency and eviction rate, how they handle maintenance approval limits, and to see a real owner statement plus their actual make ready scope and costs from a recent turn. For realtors I’d ask how many investor deals they closed in the last 12 months, what neighborhoods they personally like for stable cash flow right now, and if they will underwrite in writing with taxes insurance vacancy repairs and a realistic rent range instead of a best case number.

If turnkey is the goal, I’d interview PMs first and work backwards from their rent ready standards and what they will not manage, then make your buy box match that. Also make sure the realtor and PM agree on rent and condition because if those two are off by even a little, your cash on cash will get crushed. I can share a short list of Indy PMs and investor friendly agents I’ve seen perform, and I’m happy to sanity check any deal numbers you get back.

What kind of properties are you targeting and where, like price range bed bath and neighborhoods you're looking at, and are you planning to use conventional loans or DSCR for the first couple?