Unloading Calgary Condos At A Loss

[GrahamWhite]

It turns out that property management with a company was a money losing proposition and managing all of our portfolio has taken me away from doing what I love.

I have a couple condos in Calgary that are in great shape, but I don`t have the energy to fill them with tenants again. For no particular reason they`ve both been a challenge and now I associate them with "headache".

Someone recommended we try rent-to-own rather than selling right now, but I`m feeling like I just want to get them out of our portfolio.

With four kids under the age of 7, 24 doors spread around 5 cities and two full time-businesses, I`d be happy to just get some stuff off my plate.

Maybe you have a creative suggestion for how to hang on until the market goes up or maybe you know someone looking for a deal. Either way, I`d love some suggestions for how to lighten the load.

They`re both 3 br, 1 1/2 bath 1100 ft SE Townhouses purchased in 2007 for about $210,000 with about $155,000 on the mortgages today. I`d like to walk away with $20,000 back on each if I could, but maybe re-renting and holding for a couple more years would be better. What do you think?

 

[Fortuneinvesting]

QUOTE (GrahamWhite @ Apr 15 2009, 06:16 PM) It turns out that property management with a company was a money losing proposition and managing all of our portfolio has taken me away from doing what I love.

I have a couple condos in Calgary that are in great shape, but I don`t have the energy to fill them with tenants again. For no particular reason they`ve both been a challenge and now I associate them with "headache".

Someone recommended we try rent-to-own rather than selling right now, but I`m feeling like I just want to get them out of our portfolio.

With four kids under the age of 7, 24 doors spread around 5 cities and two full time-businesses, I`d be happy to just get some stuff off my plate.

Maybe you have a creative suggestion for how to hang on until the market goes up or maybe you know someone looking for a deal. Either way, I`d love some suggestions for how to lighten the load.

They`re both 3 br, 1 1/2 bath 1100 ft SE Townhouses purchased in 2007 for about $210,000 with about $155,000 on the mortgages today. I`d like to walk away with $20,000 back on each if I could, but maybe re-renting and holding for a couple more years would be better. What do you think?

Where in the SE, I`d be interested in these. Please provide some details on condo fees, taxes, rents etc. Sorry I dont have any other advice though.

 

[Nir]

put your health first and sell them.

 

[thejules]

I would encourage you to keep going and get them rented out again. At least until late next year. That`s when we`re apparently going to have a bit more of an upswing in our respective economies. That would be a much better time to sell. I would take my time & advertise on the internet, put a sign in the unit`s windows. Be choosy who you rent to. And Why not? Two doors vacant out of 24 isn`t bad. I know the feeling. I have a full time job, 3 kids, one a teenager with attitude. And some times not so great of an attitude. But in our business its perserverance that gets us over the bumps along the road. Hang in there buddy. I know that you can do it!

 

[Thomas Beyer]

indeed property management is VERY time consuming and should be done only if:
a) you love it and have time (say you`re retired and want to fill your time with s.th. you love ..)
b) you want to grow this into a for profit business (100+ units recommended)
c) you`d like to learn it .. before you decide to hire a 3rd party

Sell one for cash .. or hire a capable property manager and rent them ... then decide in a year or 4 ..

Your focus should be your health, your family .. then finding more money from co-investors and more deals .. but not the day-to-day management !

 

[DaveRhydderch]

If you do decide to sell, I have clients who could be interested. Drop me a line with some more information.

Good luck,

Dave Rhydderch

 

[Bluesteel]

It seems like you need to streamline your assets - I would sell the problem areas and buy in the city you live, preferably near your own residence. I used to have properties in Red Deer and Calgary, I live in Calgary. Not to bash Red Deer but I always found the place to be an absolute nightmare in managing the properties because of the core demographic renting in Red Deer. Court evictions and lost rent were commonplace. To contrast, I have several properties in high quality neighborhoods in Calgary - Banff Trail, Capitol Hill and Hillhurst - and almost without exception I have had virtually no tenant problems (only 2 problems over 9 door over 4 years).

I know it is very possible to make profits in many other areas and towns but keeping it simple and managable over the long term, especially when you have kids and other interests, has worked very well for me.

 

[Thomas Beyer]

QUOTE (Bluesteel @ Apr 16 2009, 04:04 PM) It seems like you need to streamline your assets - ... but keeping it simple and managable over the long term, especially when you have kids and other interests, has worked very well for me.
This is excellent advice !!