property manager/ renting out of state?

Question

Hello,

I am thinking of buying a duplex vs quadplex in Syracuse New York, FHA loan, live in for one year while other units are rented out. In the next 1-2 years I will be moving to South Carolina. Does anyone have any advise about property managers and if managing rental properties is difficult from another state? This would be my first rental property. I would like to wait, but my rent is insanley high. Would be much better in my own duplex/quadplex. Please give your advice. Thank you

Neil Goradia · Answer

I've been living away for a while now and the key is to find someone really good while you do live there. There are so many bad PM's out there that say the right things during an interview but do not perform. Try to stick to the following;

1. Try to find one that has between 10 and 100 units. I feel like the ones that have 500- 1,000 units don't have time for you and don't perform well.

2. Try to use one 6-8 months before you leave which will give you time to find another one if they don't work out before leaving. I had to go through 3 before I found one that did the things I wanted them to do for a reasonable price and had an online portal where I could check up on the status at anytime. I am very happy with the one I have now.

3. The key is to find one where labor charges are reasonable. Nothing kills your cashflow like ridiculously high rehab charges.

Will Chamberlin · Answer

@Eric Brandenburg, I would echo what Neil Goradia says. I have a few houses that I am taking a hybrid approach with while living on the west coast. I have a local presence for showings and screenings (my wife's aunt and cousin who are licensed realtors and run both a real estate business and property management business) but do all the day-to-day management and scheduling of contractors remotely between my wife and I. Happy to discuss if you want to PM me. If you want to be completely hands-off then Neil's plan is solid. I tried to hand off keys to a local property manager and move out of town once and fared very poorly. Would definitely recommend trying it out while you still live there and can monitor closely.

Jason Goretzki · Answer

Eric,Both of my units are out of state, & our Property Manager is great!  She was through a referral of someone that I already knew was hands off.  We get notifications of any repairs over an agreed amount, & anything under is automatic.  Often times she even provides multiple quotes from different contractors.  My only suggestion, as I got incredibly lucky finding someone so good on the first try, is just to look for recommendations in the area from other people remote.Are you also going to have a real-estate lawyer local to that area?  Or an accountant?  Perhaps they would have a good recommendation of a local, successful, Property Manager.

Ryan Hilbun · Answer

@Eric Brandenburg I manage two properties out of state so it's definitely doable. I initially hired a PM that turned out to be terrible, I knew i could do a better job my self. That being said, It's not ideal and you will end up spending more money than if you were local. I only do it because I move around for work and the properties cash flow so I'm still making money. Ideally I will be in a permanent location soon and will get rid of those properties when the time is right.

Some things to consider: wait and invest locally- if you plan on managing the property yourself you can save a lot of money by fixing small problems yourself. Most issues that come up are small jobs that I could do, but I have to pay someone to do it and pay 2-3 times as much.

If you're itching to get started just know that it can be done successfully, but can also be a pain. It's also been a good education. I don't plan on managing all my properties, especially once I get a few more, but I've proven that I can do it successfully. I know how I want my tenants treated and what I want out of a PM.

I haven't worked with a good PM yet, but I'm sure they're out there. At the very least, before you leave try to make some connections with a good handyman, plumber, and maybe even an electrician.

Daniel Roberts · Answer

what part of the state are you looking to own in?

The upstate is different than the low country and the midlands.

Feed us more details aND we would be happy to help.

Daniel Roberts · Answer

what part of the state are you looking to own in?

The upstate is different than the low country and the midlands.

Feed us more details aND we would be happy to help.

property manager/ renting out of state?

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