3 Years This Month
I think this a good time to reflect as 3 years ago this month (August 2011), I purchased my first rental. It was an out of state duplex, in a not so nice section of Rochester NY.
At the time, the rental was 1 of 4 properties another out of state investor owned and was looking to unload them all. I originally visited this property in February, made the offer within 30 days, but it was contingent on certain repairs and a new Certificate of Occupancy (hence the 6 months between offer and closing). The repairs weren't too bad, and the property was overall in good shape (roof, HVAC good) but a bunch of little maintenance things and exterior paint.
Each unit was 3 bedrooms, 1 bath, about 1200-1300 square feet each and were very clean. When I took ownership in the property grossed monthly $450/unit or $900.00 and was 'professionally' managed by a company up there. Issues started within the first 90 days, but mostly with the management company. I was begging for my money, not getting communications, repairs were being made without consent or communication, each statement (if I received it) was a surprise. I wanted out...didn't want to hassle or the risk. As a few more months went on, I felt like I was never going to get a head. I almost quit!
Then, I was fortunate. Through some networking (and prior to knowing about this site) I transferred management to another company. I was looking for someone who would over-communicate until I could get that trust built and know that my interests are being protected.
Fast forward to now (and the reason I put this in the Success Stories section) is I hardly need to talk to my PM anymore. More importantly, this month not only marks 3 years for me, but also a month where a tenant turnover situation allowed me the opportunity to increase the rent an additional $75 a month. Working with a good PM (as well as a good market) has allowed me to effectively increase the rents of each unit, that my gross is now $1175 combined, or $275.00 / month increase from 3 years ago.
I hadn't actually sat down and thought about the big picture growth until this new tenant moved in on the 1st of August. I thought it could be motivational for some ;)
Chris