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Good Rental markets for multi units?

By lostand confused following x   2018 Apr 30, 4:33am 193 views   2 comments   watch   sfw   quote     share    


Now that I have my two units and it is going smoothly so far, am thinking of diversifying some more. Wondering if anyone here has experience in being distance landlords.
Question how do you vet propriety managers and any other tips.

Markets I am considering are Indianopolis, IN, Cleveland, OH, Rochester, NY and jacksonville, FL.

Basically looking at decent returns, ok appreciation. Rochester NY has the highest CAP rates, but wonder why? Is it a dead end town? Jacksonville, FL still has low prices, but going up fast and ok CAP rates.

Cleveland, OH-well it is Ohio! Indianopolis seems quite decent.

At these prices want something reasonable as prices are very very high. Just looking and collecting data.
1   bob2356   ignore (1)   2018 Apr 30, 6:57am   ↑ like (0)   ↓ dislike (0)   quote        

lostand confused says
Question how do you vet propriety managers and any other tips.


Best source to find property managers is realtors. Explain you will be looking for property for investment and who would they use to manage it if were theirs. Contact a variety of different realtors. You vet property managers by going and talking to them and watching them operate. Talk to some tenants and some owners. Check the better business bureau, look at local forums, check out the ;property manager web site, call them pretending to be looking to rent. Check that they are handling the same types of properties as you want to buy. Most important read all the paperwork (lease agreements, contract, etc., etc) very carefully and make sure you understand what it all means. Don't let there be any ambiguity about anything. If there is then walk. Put in the hours and do your homework or you will be sorry.

lostand confused says

Markets I am considering are Indianopolis, IN, Cleveland, OH, Rochester, NY and jacksonville, FL.

Basically looking at decent returns, ok appreciation. Rochester NY has the highest CAP rates, but wonder why? Is it a dead end town? Jacksonville, FL still has low prices, but going up fast and ok CAP rates.


Rochester has gone up in the last 2 years. Everyone has piled in based on the price to rental ratio. The upper middle to higher end returns have gone down as prices have crept up on the nicer investment properties. At the lower middle to outright slum there is still opportunities. Its' an overall working class city with a lot of transients. Medical and students mostly. Rochester is very much block to block. You can have radically different neighborhoods in a very small area. So you really need someone with a detailed knowledge of the city.

If you want to check Rochester a good resource is patrick gallagher Look at his web site at gallagherpropertymgmt.com He's a very straight shooter. He is rehabbing units to sell to investors as well as brokering sales in addition to doing property management. Decent returns are not going to be getting ok appreciation in Rochester or really pretty much anywhere. You generally get one or the other.

My llc/trust manager is heavily into grand rapids and says he is getting great returns. I never checked it out, but he's a really sharp operator so it might be worth a look. I'm not going to give his name to you since you would not be potentially using his services like gallagher. Plus he's in belize anyway.

A couple resources online. Mashvisor.com is pretty new but includes airbnb. . hotpads, zilllow, turlia etc. all have rent to price ratios, but lack the expanses side. Hotpads is pretty useful because you can put a for sale map next to a for rent mapj. If there is a big black hole for rentals it is worth looking into.
2   lostand confused   ignore (0)   2018 Apr 30, 7:36am   ↑ like (0)   ↓ dislike (0)   quote        

Thanks-that is very useful!




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