Small investment properties and landlording
Asking for a friend. Truly, because I don't know how to respond even though I've read real estate books on investment properties.
I know small apartment houses are not the most desirable rental properties.
Are there - would there be interest - by real estate management companies in managing and maintaining what is basically low-income rental housing in an historical almost run-down neighborhood? Or would the fees of management and tax servicing, eviction, replacing tenants, calls to repairmen and repairs totally reduce any positive cash flow toward zero?
What would such a fictitious management company charge? Flat fee plus time and trouble? What might that be?
I didn't ask but I got the impression it's the type of property that one tries to minimize cash outlay, improve profitablity and reliability of cash flows, with an eye toward selling it. And it was difficult to sell a few years back when it was on the market.
I did read something about properties being bought remotely from far away and then the owners hire management to operate it. There must be websites to sell properties remotely? Or do such sites only deal in desirable properties?
Thanks for a quick take because that's the extent of my knowledge on the subject
Phoenix61
(17,555 posts)Any realtor can handle that type of sale. It isnt any different than any other type of sale. Your realtor calls their realtor Military members do it all the time. Lots of realty companies also manage properties. Most do a flat fee with the owner paying all upkeep costs.
ret5hd
(21,320 posts)mopinko
(71,688 posts)also, how much is your money costing you.
i got a 2 flat in my divorce, and put the cash i got into rescuing a cute little single family.
i'm in a low density part of chicago. single families and 2-6.
but there are quite a few 30ish unit buildings on the corners.
i have a small mortgage on the 2, easily paid w 1 check. the single is free and clear.
i make a tidy living. but if i was in big debt, it would be a lot tighter.
it's a reliable long term investment, but it has its risks.
the liabilities can be huge. if you arent improving when you get the chance, you rot your capital.
and these days disasters arent if but when.
i was in the middle of upgrades when the plague set in.
didnt get things back on track til feb. if i had done this on a shoestring, i would have hung myself w it.
jmbar2
(6,047 posts)Community Land Trusts seek to protect affordable housing by purchasing housing and taking it out of the speculative market. It is a very important movement.
Recently, lots of mobile home parks have been getting churned by real estate investors seeking to make a quick buck. In doing so, they are displacing many people, and reducing some of the last affordable housing for low income people.
Now, community land trusts are being formed to fund residents to purchase and run the parks themselves. This could also be a possibility for apartment buildings.
Below is a very good introduction to Community Land Trusts
Here is a link for working with Freddie Mac to fund properties for Community Land Trusts
https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/shared_equity.pdf