All Forum Posts by: Jessica B.

Hi All, 

I have a duplex in Ohio that I've inherited. It's not a great property, but not an horrible one either. It's currently managed by a property management service. I've been asked "what I want for it?" It's really hard for me to evaluate its price. So I'm hoping that you all can help me get an idea of what to ask for it. 

Here are the details: 

- 4 bedroom, 2 bath about 1700 sqft, built in 1883
- Neighborhood: C I think, close-in 45503 if your familiar with the area
- Duplex upper unit and a lower unit, each 2br 1ba
- Current rent 300 upper and 400 lower (which is up from 200 and 250 in 2014), neighboring duplex gets 600 for a 3 bedroom but it's nicer
- Expenses (prop management, lawn, bills, taxes... ) in 2016 so far $2200 and in 2015 $3200
- Profit from 2015 was about $500 (had the upper vacant for most of the year), profit this year should be about $1,600
- Appraiser $50,000 Zillow $58,000 Trulia $37,000 Estate $16,000
- Bought in the 80's for $15,000

Thoughts?

Here's an example. I have an out of state duplex handled by a property management service. They are also realtors. I say to them, "if anyone's looking for a duplex I'd be willing to sell." So, it really not on the market and I'm not all that motivated since it's cash flowing. But if anyone asks for a lead on a duplex, they would be told about mine. Part of why I don't want to put it on the market is because I think it would be harder to rent and would sit longer than I would like. 

I'm not trying to tell anyone how to run a marketing campaign. I'm just giving you my reaction to being on the other end of such a campaign. 
@Eli Rose

@Eli Rose  I did get a text message from them with no message. It asked me to text the word "agree" to get their message. Did I text back? Nope. Maybe I should have...

@David Dachtera  I understand the desire to be professional. Maybe my issue is that it is not personable. If the message were even recorded by a real person it would be a big improvement. When I call anyone I'm doing business with, I usually get them, a message or a secretary. I've never gotten a robot unless it's some 1-800 number and I'm expecting to be on hold for long time. They already have my name and address and know what properties I own from a quick auditors search. I'd sure like to know something about them, it would even the playing field. 

@Jay Hinrichs While my primary residence is in PDX, I get the letters because my rentals are in a different state. So I'm triggering something in the algorithms that generates good lists to market to. And the thing is I should be on that list, because I would sell certain properties. I live in a different state and some are more trouble than they are worth. I know someone local would be able to do things differently. For what ever reason the yellow letters I get for my house in PDX are of a higher quality, although I've never followed up with one. 

@David Dachtera

I get that you don't want to give out your personal information. Why is it then put on the property owner to give you their "clearly spoken contact information?" From my perspective, I don't want to give more of my personal information to someone not knowing what that information will be used for or who I will be giving it to. Especially since they seems to be guarding their communication and identity. 

If you are waiting for the earnest seller, that great. But for me, I'm looking for the earnest buyer. I see that by not putting yourselves out there genuinely you will be missing out. I'm not willing to put more work into communication than they are. And if they are not willing to follow up in person then I do not trust them. I suppose I'm not the "motivated seller" they are looking for. However, just because I'm not desperate to get rid of that particular duplex doesn't mean I could strike a deal on a different property that's causing me a headache.

So, I actually try to respond to the yellow letters I receive. I figure that everything is for sale if the price is right and it's always nice to form a connection with a someone in the same market. But my goodness folks make communication too darn hard. 

Example 1: This morning I call the phone number provided. Do I get a person on the other end? No, not even a person talking. It's a computer saying some pretty generic things, asking me to leave a message. Do I leave a message with this Ohio number when the postcard comes from Texas? nope. Would I have talked to someone? yes.

Example 2: I get a letter from a BP member. So I sent them a private message. Do they respond? Nope. 

When people are unwilling to pick up the phone, put their own name on things, use their own voice it makes me feel like its a scam or at the very least poor business. They already know my name and address and are reaching out to me. Why all of the secrecy on their end?

One reason my number might be high is that I am including the cost of turning 2 properties and some roof repair. I had 2 needing major work. But even if I look only at the properties that had no vacancies or big repairs, my numbers are all above 100/month.

Thanks! 

I am moving 2 properties over to a management service. Honestly, I think they are going to do a better job than I have. So far they've done a great job and I like the clear billing. I do have one fear. Mostly, my fear is that they won't take care of the properties and I will end up with sporadic larger bills or a worthless property in the end, instead of smaller preventative bills. That being said, I am currently spending A LOT on maintenance each year. Currently, $2800 per year per door is my average annual expense for labor and supplies. Is this normal? My rentals are mostly class C, average rents are $510.

What's been your experience with property management? Specifically please talk to your experience with billing for maintenance? Something like in an average year X is spent a year on my houses for regular maintenance?

Thanks,

 

Good job and good luck Authur D. !

I feel like I've turned a corner, taken charge and made a few good decisions. I might even be heading in the right direction.

• Average monthly income is up 15%
• Went from cash flow negative (-21,000) in 2014 to cash flow positive (7,000)
• Cut physical expenses from $63,000 to $21,000
• Added one rental
• Repaired one roof and re-shingled another

Next Year's Goals

• Gutters
• Turn a few property over to property management
• Buy one rental
• Increase emergency fund to 6 months expenses

What about you all? Any Plans?