Alexandria, VA · Member since 2017 · 10 posts · 4 votes
Real estate prices in my market are extremely high and I'm having a great deal of difficult identifying any cash flowing properties. I've been looking into out-of-state REI opportunities in Volusia County, Florida in addition to other locations (e.g., Ohio, Indiana). I was born and raised in the Volusia County so I'm pretty familiar with the different neighborhoods and places to avoid.
I'm considering approaching my parent's to work as my set of eyes of pre-purchase property visits and property management after purchase. However, I'm not entirely sure of how the arrangement would be structured. Are there any other investors out there with arrangements similar to what I'm considering? If so, how did you structure the arrangements (e.g., compensation, availability expectations, overall coordination)?
@Anne Harris I feel your pain in not finding too many "GREAT" deals out near Alexandria. I am heading up there in 2019 and hope that changes a bit! I currently own property here in Volusia Co. and plan on moving my parents here when I move. The "ideal" plan will be to get also have them oversee any properties I acquire between now and then. However, this is going to depend heavily on the types of property I choose to acquire between now and then. In your case, both of your parents and you will have to sit down and discuss what level of management they will be able to tackle. Are they going to simply manage a single family that you have rented or will it be a duplex, fourplex, small commercial property etc. ? What level of management will they are they expected to take on; collect rent or oversee that it gets done, unclog toilets or call repair men, renovate the unit upon vacancy or hire someone else? IN MY OPINION these questions (and many more) should be written down and discussed in detail before you even consider arranging a structure. But if all is discussed and you find out they are willing to take on the task then great, but I would certainly offer them a convincing WIIFM! (WHATS IN IT FOR ME!) if it is not monetary compensation for their work.
As far as having them be your eyes in the county, that may work, but do they know what you are looking for. They may not know what we get to learn here on BiggerPockets.com. They can be scouting and shooting you some deals that might not be much of a deal at all. But if you are carefully analysis deals, comparing them to the market and doing your due diligence then I am sure it will be great.
Let me know if you get serious about looking to get property here in this area. Houses are coming off the MLS in just days!
Thanks @Rainiel De La Nuez I'm in the process of putting together questions that I would like to go over with them. Hopefully the conversation goes well and I can avoid having to work with a property management company. I'll keep you posted.