My husband and I settled on our second IP yesterday, a 6 unit block of flats. The fundamentals all stacked up - priced below valuation so immediate equity and double digit gross returns.
We had problems getting information out of the property manager who turned septic as soon as she found out that we would be managing the properties ourselves. Still, we had managed to obtain copies of the tenancy agreements (albeit some not up to date) and a signed statement saying that all properties were rented at $x.
The reality of the deal is somewhat different to what was presented. Of the six units:
- one is vacant and has been so for a couple of months;
- three of the tenants are in arrears, one of whom is refusing to pay rent due to lack of action on the part of the property manager;
- three are tenanted at a rate below what was stated.
And the property manager was wondering why we didn't retain her services????
I remain undaunted, and hopefully this will prove to be a good learning experience...
We had problems getting information out of the property manager who turned septic as soon as she found out that we would be managing the properties ourselves. Still, we had managed to obtain copies of the tenancy agreements (albeit some not up to date) and a signed statement saying that all properties were rented at $x.
The reality of the deal is somewhat different to what was presented. Of the six units:
- one is vacant and has been so for a couple of months;
- three of the tenants are in arrears, one of whom is refusing to pay rent due to lack of action on the part of the property manager;
- three are tenanted at a rate below what was stated.
And the property manager was wondering why we didn't retain her services????
I remain undaunted, and hopefully this will prove to be a good learning experience...
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