Rentals Can Take You Apart!
September 25th, 2008 categories: Honolulu Real Estate 101
Many people see buying foreclosures as a great vehicle to make their fortune. Flips have become very difficult to do, so this leaves turning houses and condos into rentals. The challenge with rentals is the ongoing maintenance and management. Experience tells me that the most successful landlords are very, very hands on. It is difficult to find a good and responsive manager, especially if your rental property is out of your local area.
Since 2003, Washington D.C. base Redbrick Partners, LLC, has raised approximately $50,000,000 to buy foreclosed houses. Redbrick is now shying away from individual homes in favor of properties that require less management. Again, even with significant buying power Redbrick couldn’t find the level of management they needed. A Wall Street Journal Article pointed out the following.
“In Baltimore and Trenton, Redbrick said in a recent letter to investors in one of its funds, “we have not been able to generate positive cash flow from these assets through our internal property management organization and have also been unable to identify satisfactory third-party property managers.”
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If you have a home or condo in Honolulu that needs management, call me at 808-737-4808 and I will do my best to help you find good management.
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