Investor · LOS ANGELES, CA · Member since 2008 · 16 posts · 3 votes
Hi - we are researching various markets to purchase SFR's for buy and hold and would love to hear the experiences of fellow Los Angeles investors both good and bad.
1. What was your experiences with PM'S
2. What was the biggest lesson learned
Any comments from you guys and gals would be appreciated.
My partner and I bought a home in Arkansas. Right now it is taking a long time finding the right contractor with not being right there. We have someone project managing for us, but it is not like a local LA investment. It's too bad too because we have ample opportunities here now after we have invested.
I have a decent PM for a few duplexes in MO. They have a portal built into their site, not sure what software they use, but it works well. PM's eat up quite a bit of profit with their fee's and likely getting units rent ready. I prefer around 15% cap rates for this reason.
Hi Rick. I'm in LA and have always bought out-of-state.
1. PMs: By far the hardest part to deal with, assuming you buy a solid property in a solid location. If the property and market is solid, then it's just managing the property that is critical. No doubt, a bad PM can tank your investment. And I've had a few try. All of my negatives and all of my lessons learned have been around managing PMs. When you have a good PM, life is fantastic. When you have a bad one, ick. I've written quite a few articles on dealing with PMs, and happy to talk in detail about them if you want.
2. Lesson learned: Managing PMs. The biggest lesson learned is the MINUTE a PM starts to suck, get a new one. Don't wait, don't let them convince you things will get better (maybe let them say that once and then if it doesn't improve, leave).
Hi Rick. I'm still basically a newbie, but I have bought two properties out of state in the past six months through a turnkey company. I know six months isn't too much, but my experience with the turnkey company's in house PM outfit has been good. I haven't had any major issues yet and I hope I don't any time soon.
My biggest lesson learned is something I learned from another member. He actually negotiated the price down on a property he purchased from the same turnkey company I use. I would have never thought that was possible. I guess everything is negotiable to some extent.
Hi - we are researching various markets to purchase SFR's for buy and hold and would love to hear the experiences of fellow Los Angeles investors both good and bad.
1. What was your experiences with PM'S
2. What was the biggest lesson learned
Any comments from you guys and gals would be appreciated.
Have you been looking into turnkeys? That might be easier since everything will be done and ready to go for you. Ideally if it is a true turnkey, the will own, renovate, and manage the property all in house!