I was wondering, would it be a good idea to begin your very 1st investment with buying a home from a foreclosure auction and partnering with a property management company? I have never dealt with tenants and the possible issues that come with.
@Tamela Shannon I'm assuming you mean "use" a property management company when you say partner? There is nothing wrong with buying a foreclosure auction house and using a property management company with the first one.
Whether to use a property management company is separate and is based on your talents and needs.
Foreclosure auction is just one of many places to find a property. I would suggest learning as much as you can about the process by talking to other investors that have done it, especially in your area. Then know your bottom line and stick to it, know when you hit your max. Good luck!
Have you considered managing the property yourself? It might help you learn the tenant/landlord side of the business along the way.
I think its a great idea, Use your PM to give you a rent range pending what rehab you want to do- ie- sometimes, you can upgrade some materials (labor usually is constant or a small increase) and get a lot more in rent. I tile my kit and baths, and sometimes upgrade my cabinets if I thing I can raise the rent a few bucks or rent it faster (less vacant time)
NOW you can hold the PM accountable if they can not reach their potential rent goals and you can get a good team player to boot-
Thank you everyone
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