We're looking at an investment opportunity right now for a part share in a small office building.  Right now, it appears to be run by a management company.  I would just like to know how difficult it would be for someone like me (finance background) to run it.



Thanks

Do you have a good network of sub-contractors?  A good relationship with people in the trades is crucial when managing investment property, well if you care about the happiness of tenants.  Collecting money is easy if people are paying, if they aren't you have to be the bad guy.

Grove

I'm a stay at home dad and my youngest starts Kinder next year, so the timing seems pretty good.



As for the contacts, I have a few for my home, but don't know anyone for buildings.

First, you are a smart guy and you can figure it out.  Most properties are managed poorly, yet remain out of bankruptcy.  However, how quickly you learn is what matters most.  

The property should come with paperwork for most of the contractors used in the last year.  Start with them for emergencies and small repairs.  Then “shop” for better/cheaper vendors for bigger projects as you learn the ropes.  Ask them their opinion on the major “appliances” as HVAC, plumbing, electrical and roof.

I would also look at the financial stability of your tenants.  That’s where your cash flow comes from.  If they disappear, you are toast.  Review the terms of all of your leases before you acquire the property.  

Then do the math.  Estimate your revenue and you major cash outlays.  Revenue minus expenses equals profit.  If there is no profit, don’t do it.

You will make a lot of mistakes.  But if you aggressively pursue improvement, you will succeed.

Thanks guys.  The deal went Tango Uniform, but I will remember the advice for the opportunity.