I’m new to the board. Long time ago, I learned a lot from all the postings here as well as the RD forum and managed to buy a 4-plex apartment with no money down. After 3 years, I managed to exchange this 4-plex with an 8-plex with more than 30% of down payment gained from the 4-plex apartment. Then my interest changed and I never visited the boards, learned any thing about RE, and let the apartment be handled by PM companies. After all these years, I even forget how to read an RE offer. I totally forgot all the terms such as Cap-rate etc.
This 8-plex apartment consists of 4 units of 1 bedroom and 4 units of 2 bedroom. If they are rented at $350 and $450 each, which are the average prices for that particular area, I would have $3200. With only $1400 of commercial mortgage, by renting the 4 1-bedroom, it would have covered the mortgage payment. Unfortunately, up to this month, I only have one month black this year. Every month I had to put some money in to pay my mortgage.
Here are my problems:
- I pay 10% of commission for the PM Company.
- They get people signed up, lived there for two months, skip the payment. By the time we got these professional rent skippers evicted, they have stayed there for additional 3 months for free, then they trashed the apartment and I have to spent more money for repairing.
- I didn’t have control on how much money to spend for repairing, but out of 9 months so far, only one month black. Last month I already owed the PM company for more than $500 that will be taken out for this month’s rents.
I’m at the end of the rope, but I’m afraid to manage the apartment myself. since I have a 8-5 job.
I could only go like this a few more months and have to either find a buyer or abandon the apartment.
Any suggestion on what should I do would really be appreciated. I still want to keep the apartment but I really don’t know how to handle it.
BTW, if I post this on the wrong forum, please let me know where should I post.