I'm halfway through David Greene's book, Long-Distance Real Estate Investing, so perhaps the answer lies in the pages I have left. But I'd like to know some opinions from BP investors as well. What is your threshold for needing to visit an out-of-state property, vs. being totally hands-off and never visiting the property? What factors come into play when deciding whether or not an onsite visit is needed?
Handyman · Bellingham, WA · Member since 2019 · 22 posts · 9 votes
5y
I won’t speak past my experience which is limited but as I’ve been listening to the BP podcast (Just got to #20 of like 450 lol) there’s been discussion about the importance of checking on and training your PM from out of state to do somewhat regular drop in visits with tenants to make sure the property isn’t being vandalized or neglected. This is your investment and no one is going to care about it more than you. I would err on the side of being more hands on. My 2 cents
Handyman · Bellingham, WA · Member since 2019 · 22 posts · 9 votes
5y
I won’t speak past my experience which is limited but as I’ve been listening to the BP podcast (Just got to #20 of like 450 lol) there’s been discussion about the importance of checking on and training your PM from out of state to do somewhat regular drop in visits with tenants to make sure the property isn’t being vandalized or neglected. This is your investment and no one is going to care about it more than you. I would err on the side of being more hands on. My 2 cents
Thanks @Rodney T. I've gone through about 20 podcasts as well. And I agree 100%, nobody is going to care about the property more than myself. But I've also heard about being "totally hands off", and there's actually a book about it by Brian Burke. I haven't cracked it open yet, but maybe it has to do with REIT's.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
5y
@Cassie Wright, Jr. are you managing this yourself or did you hire a local manager? Letting everyone know that may give you better/more targeted answers.
Hi @Scott M., thank you for your input. As I mentioned in my original post, I'm looking for the threshold at which a landlord can be totally hands-off (therefore, hiring a local property manager).
Rental Property Investor · Morgan Hill, CA · Member since 2012 · 212 posts · 64 votes
5y
@Cassie Wright, Jr.
For us it depends on the specific tenants and issues. There are some that are great and once per year has been adequate. Others need a bit more guidance. Generally once per year has been adequate, but we have generally had great tenants. The other piece of the puzzle is that when you have a vendor go in for one thing, have them check other things as well. For example if there is an issue with the garbage disposal (and for all the naysayers, my markets demand garbage disposals) have them exercise all the shut off valves. Chat up the tech over the phone and ask how things look. With the money we would have spent on a manager, we can fly there many times.
However and a big but, this math does not work for properties that don’t bring in the requisite income. There are some that you need a great management company. Make it part of the deal that they do a walk through and send pictures. Be specific on what you want to see in the pictures and remember you are not their parent. If the tenants ask, the insurance company requires it (no insurance company is going to say don’t check the smokes)!
Baltimore, MD · Member since 2018 · 431 posts · 281 votes
5y
I'm visiting twice a year. It's a student rental where my parents live. I really need to be there for the flip over each year (because that's when big stuff will be done) and we shifted to doing Christmas at their place now instead of mine so I can slip in while they're gone over Christmas to take a look-see and do any small projects I can get away with then lol. I'd kinda want to lay my own bare eyeballs on a property once a year, though.