Out of State Investing
Looking to buy a duplex or fourplex in the midwest. When I do the analysis I assume approx 5% vacancy, 8-10% in capital reserve, and another 8-10% in property management. With 25% down the numbers begin to get very tight. A couple of questions: 1) is 8-10 % for capital reserves realistic or should I adjust up or down and 2) is the fee of 8-10% for property management a good bang for my buck? Certainly, nothing against property managers but so many of the posts and podcasts do not seem to have a lot of positive comments. I thought maybe having a local real estate agent fill vacancies might be a viable option and then utilize the services of a handyman for repair. Appreciate some feedback on others' experiences.