Long Distance Investing

Hi Wendy,
If you do not have any friends or relatives in the distant area that you can trust, then I would find a franchise real estate office in your area that also has an office in the distant area. Get one of your local real estate agents to work with you via contacting an agent in the distant franchise office and they can work out a way of shareing the commission; while, working for you.
Tom

Thank you Tom.

I am so grateful for all the experience I have gained thus far to be able to see a deal and know if it is a good one or not.

I did my due diligence and decided that although it is a good cash flow opportunity there are others that are better and closer so I am pursuing those instead.

Each deal I investigate or work on gives me more information and confidence.

I have also learned to let the negative comments of well meaning friends and family roll off my back. With the long distance deal I was told it was a risk. I had the confidence to say "Everything is a risk, even getting in your car to drive to work." "It is knowing what the risks are as well as the benefits and being able to determine if it is a good risk."

Thanks again!

Just a thought; does the $500.00 mo. cash flow include property management such as lawn care and snow removal? Also some way to address the home maintenance like furnace problems. You want to account for everything to make sure.

LOL Well have to be honest and didn't even think of snow living here in Southern California. But yes it did include property management and if I ever decide to invest in snow country I would confirm that.

Here are some of the details:

Asking $81,900 (I personally think this is high. It would be a much more attractive deal at $70K)

Three units: all 2/1's
Total square feet 2,999

Current owner contractor who put more than $80,000 in rehab including new electrical, plumbing, new furnaces, carpet, some new windows, replaced gutters, new dishwasher, and roof repair

He owns 22 properties in the area and said his retirement plan is to sell 1 a year. He also lives near me. Sounds like a very decent man.

Fully occupied with leases: $13,116.00 annual rental income / currently charging under market rents. Leases begin to renew in Jan 2010. One tenant is Section 8.
Taxes: $3344 (fairly accurate I checked. Taxes are High in NY!)
Insurance: $1368 (didn't check on this one yet)
Water: $334 (not checked out and heard that a landlord should pay for heat to protect the pipes and let the tenants pay their own water)
Good property management in place charging 10% of gross rental income (they manage all his properties and he is very pleased with their work and record keeping - sent to him in QuickBooks file)

Hi Willow,

I used to live in So Cal and have lived now in Miami for the last 8 years. I have been investing in an area outside my state and use a property management company. If you choose to pursue, look on-line for property management in the area you are planning on purchasing this property. Call as many as you can and ask them how much of a percentage they charge and what you get for that amount. Long distance investing can be very profitable if you have a good team in place. Good luck!

Best,
Angie

After reading more of your post in addition you should see if the meters are seperate for water. If they are then the tenants can pay for it. What you need to do is contact the water company and tell them you want the water to be reverted into your name if they plan to shut off due to non payment. This way you will know and your pipes will not freeze. I learned all this long distance since I too have never lived in the snow.

Now if you in fact do not have seperate meters than by law Section 8 will not let you bill the tenants anyhow. If they are seperate than you can with Section 8 but need to alert the tenants a month a head of time via letter so they can be aware. They should be fine with this because they will get an allowance from the state to help cover it. Good luck!

Sincerely,
Angie