Difficulty Of Owning Out-of-state Multi-family Properties?
to those in the forum that have had the benefit of owning both local and out-of-state multi-family buildings, how difficult is it to own something remotely? is it hard because you cant always check up on the property mgmt company, etc? or is it just like any other investment, as long as the #s line up?
Hi there!
I think it depends on a number of factors, primarily the type of property and tenants(low, medium, high income) and the property management that you put in place. No matter where your property is NO ONE cares about it as much as you do, which means that there will always be trade offs if you are going to own property that is not local to where you are. I would suggest doing a lot of due diligence when it comes to putting management in place(understand their methods, and work ethic and ask the hard questions). Consider having someone onsite if you can(we learned the hard way). I would also suggest building travel expenses for yourself into your budget(no matter how good the management)and making the effort to visit the property at least a couple times a year if not more.
Good luck!
The properties im considering are definitely Class B and C properties, so they arent the greatest in the world, but they arent war zones. You mentioned "ask the hard questions", could you elaborate?