I have never owned residential, but I have a few small commercial single tenant buildings. Commercial tenants are not as labor-intensive. This would especially be true with the schools, in the respect that they would probably stay put for a while. The most work is finding the tenant and getting them into the space. Presumably your arrangement will include the tenant building out their space?
You might just try it yourself, contracting out functions that you can’t handle. Such as what you are doing with the realtor finding tenants. That’s what I’d do, anyway.
Posted by Chris-PA on November 29, 2004 at 20:16:24:
Hi, my company purchased a 120,000 sq-ft office building in downtown Allentown, PA which was vacant and had significant tax liens. We have gotten all systems up and running. Building is now ready to rent. A local commercial realtor is seeking tenants. There are several excellent prospects such as a community college, the school district, a technical school, and a restauranteur who wants to open a dinner theater. We were considering flipping the building now that it is up and running but we could have killer cash flow if we can get it occupied.(besides the taxes we would need to payif we sell in under a year). We got financing at 25% LTV based on our appraisal and are working on another loan. Now to my question: we have experience managing residential 1-4 unit properties but if we are keeping the building, how do we find someone to manage and develop a building of this size?