Specialist · Washington, DC · Member since 2011 · 6 posts · 0 votes
General question: What are your thoughts on the ideal distance between where you live and your first investment where you're managing tenants?
I'm guessing most will say buy something you can see every day. However, what if you lived in a small market that was already saturated (more rentals than demand)? How far is "reasonable" to manage a SFH?
Katie I would suggest that you could go further out then that and use a property management company to oversee your property. They normally get 7-12% of your rent but its well worth it if they handle collecting rent, leasing out, tenant issues, advertising, general maintenance, repairs and improvements. It would also open a much broader market for you. I would make sure to make contact with someone reliable on the ground in the market you are interested in. They in turn can help advise you on where best to purchase in your selected city. Thats my two cents lol...
I personally LOVE to keep a close eye on my investments so i'm within 5 minutes. I screen my tenants thoroughly, some know where i live and i have no problem with that. I treat them fair and they like that. This business doesn't need to play out like Tom & Jerry(hide and seek)
I like to manage my own properties, but for most people I think a property management company may be the way to go. However, for your first investment, I think you should manage it yourself to really learn the ropes and be able to understand the business. For that reason, I would recommend your first property be pretty close to home (you can define that distance yourself). Once you get the hang of it, you can expand out from there.
Once you're outside your immediate area, it doesn't really matter too much. A house 200 miles away isn't much different from one 2,000 miles away. Either way, you can't run over there to fix a leak at 2 in the morning. But a good manager is key for long distance investing.