Well I have been in my hometown for the last 16 months taking care of business and think that I may be ready to relocate. I have been managing my building personally since returning from the mountains. In this time I have taken time to upgrade alot of things but the building is so big it takes a while to finish a really big project. We have made great leaps since I took this place over. I took it out of a family trust and replaced the old manager, most of our dated outsourced labor, and began doing all of the financials and accounting. The building is probably worth double what it was when we got it 20 years ago and the neighborhood is quite a bit nicer, plus we are right next to a local university hospital. 85% of my tenants work or go to school there. The last 12 months I succeeded at raising out rents $12k and increasing out net profit by 30% putting us over the top by about 11.3% above all expenses. We accomplished this by training our maintenance man to carry out the majority of the plumbing, carpeting, painting, and other basic repairs. This cut our costs for outsourced labor nearly $15-20,000. It is an older building and the only reoccuring issue is old plumbing. We renovate as tenants move out and had a vacancy loss of %5 last year. Overall I can say it has been a huge learning experience as I had no real management training and only graduated college 4 years ago. I want to relocate and am thinking to start a property management company somewhere up in the mountains or very close by. I dont have my RE license and think that it may be required if I want to rent for other people where I am going. I am looking into that immediately. If we can get what I want I believe we will have about 1.5-1.8+ in equity to put down on new property. I plan on staying with about %30 down or maybe more depending on what rates are at the time. That would put me at purchases of around $6m.
- How long can I expect to wait to get the building sold?
- Suggestions for 131 exchange in or around Colorado/Montana/Tahoe? Short term and/or long term rentals? Vacation homes?