Posted by David Krulac on March 31, 2008 at 04:54:10:
In Reply to: Self managing-out-of-state property? posted by RevInv on March 28, 2008 at 10:38:55:
1. Nobody even the best managers will manage the property as well as you will.
2. Management fee eat up a big portion of your profit. Around here the management fees are typically 7-10% of the rent. In resort areas the management fee could be 25%.
3. All of your positive cash flow and then some could go to the manager leaving you with nada. It will look good on your taxes having a loss before deprecaition, but I'd like the cash flow rather than the tax deduction, but that's just me.
4. One investor I know lives in DC and has 20 properties in FL and does quite well. He has a "handyman" on the ground who alos lives in one of the places and handles renting up the units. The owner goes to FL about every 3 months, tax deductable, and has given all the tenants his cell phone number. He tells the tenants to call the handyman first, and if not satistied to call him.
5. Screen your property manager, make sure that they are licensed, experienced, knowledgable, and insured.
6. I used to own property in 7 states, no more. I've even sold property 30 minutes away as being to far for me to travel.