Denver, CO · Member since 2014 · 22 posts · 23 votes
I'm under contract to buy a small apartment building in Pawtucket. This purchase is a lot of firsts for me - first multi-family and first out of state purchase.
I'm looking for a property management company and curious if anyone has any recommendations?
I always caution people about out-of-state investing, giving the same advice you did, but I wonder if I'm being too conservative because - as you pointed out - the books and podcasts make it sound so easy. You know the terms, "turn key" and "cash cow", etc. 😄
I appreciate your real-world feedback Erin, and thanks @Fan Bi for asking her for that!
@Fan Bi, sadly no. I wouldn't invest there again, but will give the caveat that I wouldn't do it BECAUSE I am an out-of-state investor. I live in Colorado and make it to my property twice a year, but prefer to be much more hands on than distance allows. I've found management to be much more expensive than I'd have thought it to be, and I've had a few tenant issues that have been frustrating, to say the least. I was eager to invest out of state for a variety of reasons, including, but not solely because of advice I'd read and listened to on Bigger Pockets. I've found it a lot more difficult than any podcast would have you believe. You need a rock solid management company who offers personalized attention to detail, and that's hard to find, frankly. I also own a small handful of properties in and around Denver (where I live) and that's all been a breeze (the odd tenant issue notwithstanding) and financially very successful. When I eventually sell my Pawtucket property, it will be my last investment in the area and I will only invest locally henceforth. That's just me though... I'm sure others have a better system for out of state investing than I do. That being said, I'll be looking to sell my 3 unit building in Pawtucket in a year or two... :-)
I always caution people about out-of-state investing, giving the same advice you did, but I wonder if I'm being too conservative because - as you pointed out - the books and podcasts make it sound so easy. You know the terms, "turn key" and "cash cow", etc. 😄
I appreciate your real-world feedback Erin, and thanks @Fan Bi for asking her for that!
@Erin Onsager Thank you so much for the valuable information! And thank you @Fan Bi for the excellent follow up question. Honestly, my wife and I have been going back and forth about whether to sell our property or manage it remotely. Given the circumstances due to Coronavirus, we’ve decided to keep our property for now.
We have some tough decisions to make but this information will help us a lot. Thanks again!
@Erin Onsager I would also second Lyon. Quality through and through from what I know, I do self-manage but only because I'm local and it's only 6 units.
@Stephen Torti I did not go with Lyon as they unfortunately do not allow you to cherry-pick what maintenance items you want to take care of on your own vs. have them handle. They are an all or nothing management company, which surely works well for many owners. I prefer being a bit more hands-on though, so that approach doesn't work for me.