Property managment dilema

**kekila** · 01-25-2009, 09:55 PM

Hello everyone,
My name is K and I am in the military. I know that in 2010 I will be moving to another state or country and I really would like to keep my house and rent it out rather than sell it. Since I will not be anywhere near my house I will have to hire someone to manage the property.
My rub is this, my realitor, who was reffered to me by a friend who invests in rental properties, was great in helping me purchase my first house, however she and her husband run a private reality business. Just down the street from me is a house that they have been trying to rent out for a few months and it got me thinking, would it be better for me to hire a property manager from a nationaly known reality company rather than a great "mom and pop" realitor?
I realize that there will probably be a loss of personal connection if I chose to go with a national chain, however I figure that it will be compensated by the fact that the larger company will have a much better advertising budget and will be able to reach a much larger group of people. What are your thoughts and advice?

-K-

**REI GIANT** · 03-02-2009, 04:35 PM

I own over 100 properties and would never use a property management company that owns RE. The reason is that if they have a vacancy it is only natural for them to rent their property first. I learned this the hard way. Before you decide to keep the property you need to decide you exit strategy.
1. Are you going to keep this property for more than 5 yrs? If you are you will have to pay capital gains on the property when you sell it.
2. Will the property cash flow? I never hold properties that do not cash flow.
3. If you do decide to keep the property I would hire a national property management company. I would interview 3 and find out exactly what you are looking at for them to manage the property.
REI GIANT
reigiant@gmail.com

**REI GIANT** · 03-02-2009, 04:37 PM

Well since you asked this in a RE forum I am sure most if not all will say invest in RE. I have been purchasing property for over 15 years and have been very blessed. If you decide to invest in RE you will need to make sure that the property has a positive cash flow. I use the following formula to decide whether or not to purchase a property( purchase price+repairs x 1.5%= rent). If the property will not rent for 1.5% of the purchase price I will not buy it. Hope this helps.
REI GIANT
reigiant@gmail.com

**Jenie0109** · 03-02-2009, 07:02 PM

Reading your situation I could say you are not sure yet, obviously. I suggest that you consult both parties and know their terms and try to identify each sides' strength and weakness, the pros and cons. Then make a choice according to your needs.