Property Management & Exit Strategies
Property Leasing and Management Options for Out-of-State Buyers
Finding a top quality property management company to lease and manage your property is one of the most important components of a successful out-of-state real estate investment. You may use any property management company you want, and we can provide you with a list of them...or you can use the preferred company that was chosen after interviewing them all. The Principals of Maverick have owned many investment properties across the country, and have seen the good, the bad and the ugly, which is why we focus meticulously on the property management component.
We spent extensive time interviewing property management companies in the area, and have negotiated an incredible option for our buyers with the preferred property management company:
- Guaranteed Tenant in Place When You Close: The preferred property management company will launch an aggressive pre-leasing campaign to find a tenant for your property that is ready to move in as soon as you close. If there is not a tenant in place when you close, they will pay you rent for up to 60 days until a tenant is secured. That is how confident they are they can rent these properties quickly!
- On-site Management: The owner of the company has her personal primary residence in Tarabrooke! She will literally be living on site.
. - Discounted Rate: Leasing and management services will be offered to Maverick buyers at special discounted rates (8% monthly fee, no up-front fee before it is rented!) .
The Rental Market for Tarabrooke
Maverick studied local rental demand, and Tarabrooke is unique in its potential to produce a positive cash flow for the owner. Very few properties in the Mississippi have that potential.
The preferred property management company estimates that market rents* at Tarabrooke are approximately:
- $1,200 / mo for a 4 bed / 2 bath floor plan.
* Like all markets, the rental market is subject to adjust and there are no guarantees of monthly rent or vacancy rates.
Exit Strategies for Tarabrooke
- Long Term Hold: Many buyers will choose to take a hands-off approach, allow their rental income to flow into their bank account each month and let the tenant gradually pay down their mortgage, building equity in the property.
. - Sell to a Primary Homeowner: Since Gulfport is one of the most aggressive growth markets in the country, some buyers will look to sell their property to a primary homeowner in 3-5 years. You can use any real estate agent you want to list your property, or you can use the property management company to sell it for you. We would encourage you to consult your tax professional to see if a "1031 Exchange" would make sense for you to defer some or all of your capital gains and depreciation recapture.
. - Lease Option: The property management company can advertise your home as a “lease with an option to buy”. This means that you have a tenant who would like to buy the property at a future date. The tenant signs the lease with you and also signs an option agreement, giving them a right to purchase the home at a fixed price within a fixed timeframe, pays you a non-refundable option premium in exchange for that right, and often pays a higher monthly rent (some of which gets credited towards their future purchase price). As a lease-option tenant intends to buy the home one day, they usually take very good care of the home, just as a primary homeowner would.