Finding Property Management

[Kyle Smith]

Hello everyone,

I am looking at purchasing a property in East Cleveland, however, I have been hitting some road blocks when it comes to finding a property manager. I realize East Cleveland isn't as nice, but I'm less concerned about appreciation and more concerned about cash flow at this point. I have reached out to 7 or 8 PMs in the last 24 hours and only 2 have gotten back to me but both have said they don't service East Cleveland. Any idea why this would be? Is it because rents are lower and so it's not as profitable to professionally manage in East Cleveland? I did notice that crime rates in this neighborhood are 19% higher than the rest of Cleveland, which doesn't seem too bad to me, but perhaps it is and that's why I'm having a hard time finding a property manager?

Or perhaps there's something I'm missing?

Thanks guys.

[Andrew Weiner]

The managers don’t operate there because it’s too difficult to collect rent there, the turn over is too high, and it’s outright dangerous.  Whatever your proforma says is not accounting for the reality in the ground.  Most of my vendors won’t even take a job there, doesn’t matter what the price is.