2-in-1 Question - rehabbers/rent mgmt

General Real Estate Investing
1

Hi!
I have my eye on a FSBO about 2 miles from where I live. I’ve talked to the owners; in one breath they say this isn’t a “distress” sale but in the other they talk about how they can’t wait to be rid of this rental. It is currently vacant. I plan on following up with a call in 3-5 day to assess motivation level again - I’ve mailed my business card also.

Whether this property works or not, I have to move into developing a rehab team for future prospects. I am brand spankin’ new to this so I’ve read the best way to go is to eat a little of the profit and use a general contractor for the first 1 or 2 rehabs. I’m fine with this.

What advice can you give on what to ask/look for in contractors? Also should I always tack a month or two onto my timeline for holding the property since it seems like things are never finished in time (or on budget, so add $ there also)?

I have already decided if I ever rent, I’m using a property mgt. co. What is the standard fee? What should I ask when calling around to compare companies?

There are such educated people in this forum that I’d thought I’d ask these questions first before trying to re-invent the wheel.

By the way, as someone mentioned in a earlier post. . . is there a search feature on this website to search by topic?

Thanks,
Immy ::slight_smile:

2

as for property mgmt, I pay a couple hundred to place a tenant and 10% of all rents collected. I know some people go as low as 6% on the rents collected. Some places will try and charge a full months rent to place a tenant. I think this is too high as if the mgmt co. makes a lot of money on placment and small amt on the income stream they are more likely to place a questionable tenant. In the converse situation (low placment, higher percentage), your interest are aligned (e.g. they get paid when the rent is collected!)

Prop. mgmt rate seem to vary based upon local customs/economics.