No HOA, no management fees on any of my properties. I've been "managing" them myself from CO for 3 years. I only buy properties in hot areas where demand has been, and will be, very high. I list on postlets.com and haven't ever had vacancy. I have a few tricks on driving the highest possible rent, which I would share w/ any buyer. I have a plumber, electrician, etc who I work with if there's an issue, but all my properties are newer, so no real issues.
All that being said, cash on cash return is around 10% on all my properties at my current desired sale prices, maybe I should raise my price (ha). As an example, I've got a property in Dallas (Lakewood) that would be a $60k down payment (20% of SP) and $4,000 closing costs. You'd go get a mortgage at 4.5% net from erates (could probably get a better rate, but just to be safe). Expenses are taxes at $6800 and insurance at $1000. It's leased by a corporation at $2650/month and includes all appliances (including brand new front load washer/dryer). It's also fully furnished by me, so I'd include all the furniture as well. They only do 1 year leases, but this one expires on Dec 31, '15 and they have every intention to renew because the consultant living there is on a 3 year assignment that started last month. Anyway, this one would return 13.5% cash on cash for the first year because of closing costs, year 2 it would be 14%+ because no closing costs. I'm also assuming $2500 in cash expenses for repairs, but I've never spent that much on any of my properties in a single year.
justin.mcnaughton@yahoo.com if you're interested in this property. I do have an investor trying to get cash together to buy, but he's been slow, so I'll sell elsewhere if someone else is more "ready" than he is..
