how to manage out of state property ?

[Denny]

Hi Guys,
                  i recently bought a house out of state. i was talking to a property management in the area regarding the unit. They will charge $85 a month plus $300 + $50-$100 advertising fees when there is a new lease.

That is a lot of money and i already have negative cash flow.

i am just wondering if anyone know a way to rent properties with paying such high fees to property management.


thanks

[Bud Branstetter]

I am not going to ask why you bought something that has negative cash flow.

The normal way would be to lease option it to someone. By getting the option money you gain additional rent if they do not buy.  If they do buy you get your price and rid of the alligator.

There are offshoots such as giving them credits on purchase price for more per month. Also approaches such as Gatten's EHT where you sell ownership benefits for either down or monthly payments.

The normal property mgt fee is 10% of the monthy gross and the deposit(1 month) for securing the tenant.