So I've run the numbers and it looks pretty good if the numbers given are real. 14% cap rate, 35k NOI and rents are below avg.20 yrs old. Looks good in pics. I asked the realtor for rent history and if it's under management. He replied he will get the rent info but is not too sure about management. My problem? Town population = 700. commute to Iowa City or Cedar Rapids is roughly 30-40 minutes, would make getting reasonably priced manager a little difficult. I want to go with it but the small town aspect is kind of scaring me away. Any input on this dilemma?
Hey @Scott Justason ! This isn't the one in Ryan, IA is it? If so, I'd steer clear of that.
We personally steer clear of anything that's so far out of town for the exact reasons you mentioned: For one, it's hard to get prime rent when you're out so far. Second, it's hard to get property management out that far.
Try to find a local realtor specific to that area that does property management on the side. Or perhaps, one of your tenants may be a good applicant to be the building manager at the very least.
I was looking at a 4 plex in a smaller town and the Realtor I was with was willing to manager the property for me - as that's his side income as well - but I was scared off by the small town. He ended up selling it quickly to another investor and its been going fine apparently.
No, It's not in Ryan. That's even more scary than Olin.
I remember you were asking about PM's a few days ago. I just found this guy and am waiting to hear back from him. I'll post here how he seems if your still looking.
@Scott Justason Ha, yes Ryan is definitely more scary than Olin!
Yes, please let me know your initial opinion of that guy!!
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