Becoming a property manager: question

[Nancy Parris]

I live in a condo complex as an owner. It's a very nice place with great amenities and is kept up well. There is a unit in our building of which the single owner died (death did not occur in the unit), and the daughter who inherited the property is out of state, lives in a capital city, no driver's license; she has no means or ability (considering COVID travel restrictions) to visit, clean out and sell the unit. She has been an absentee, probably grief stricken and doesn't want to deal with it. She's (presumably) paying the HOA fees, taxes (& mortgage, since the late owner was here less than 5 years). It has been vacant since January (yikes....all of that potential rental income lost!)

We are in a town just outside of Boston and identical units in our complex are selling for $400k and rental rates are $2k+/mo, so it doesn’t make sense for me to approach her about purchasing it. I was thinking about getting in touch with her, asking about her plans, offering my help as a local neighbor etc, and ultimately seeing if she would be interested in me managing it as a rental property for her. Has anyone had experience contacting an owner (in probate) about managing their vacant condo/home? I would also be open to clean/pack the owners things. I’ve met the inherit a few times casually at holiday gatherings, but I don’t know her well enough to broach this subject easily. I’ve never managed a property but I’ve lived here for 4 years and I’ve only had to call the management company once or twice for questions, and the maintenance issues have been minimal since the buildings are in very good condition and new owners tend to make improvements in the first year of ownership. The new owner is loosing out on some major income leaving it vacant, so it looks like a win-win, but I welcome everyone’s input! 

Thanks,
Nancy

[Nathan Gesner]

Mistake #1: you assume to know what she's thinking, needing, wanting, and willing to do.

What if you approached her with an offer to purchase at 50% off market value and she took it? What if she were crying on your shoulder and thankful for coming to her rescue?

If you approach her with one option, she may reject it flat out because it doesn't meet her need. I recommend approaching her with multiple options, as many as possible. I also recommend you avoid sharing numbers and revealing your hand. 

For example, you may find out all she wants is some steady income and she would be happy with $1,000 a month. Offer to purchase it at $250,000 and owner financed at 5% and she'll get what she wants while you get a good deal. A man approached me about managing a six-plex and ended up selling it to me with owner financing at 75% of market value, simply because I found out what he really wanted and then structured a deal that met his need while meeting my investment goal.

She may want top dollar for it. She may not. It never hurts to ask.