I am hoping to get some advice/perspective. While holding a flexible, but full time job, how many properties can one person manage on their own before using a property management company? I currently have one duplex and am about to close on a single family and an additional duplex. I'm a bit concerned about what that could mean in terms of my time commitment while still working full time. Properties are about 60 years old.
We currently have 8 duplexes and both work full time. My hubby actually works 60 hours a week. Sometimes it's super busy and sometimes not!
@Matthew Koch that depends on how good you are at setting up systems and then sticking to them. I have met people that couldn't handle 1 rental because they were no good at it. I've met others that can manage double-digit units while working full time because they screened good tenants, have systems for communication/rent/maintenance, and stick to them. Basically, it's plenty easy to do depending on the person.
Best of luck and happy investing!
I'm interested in this and following. We're starting to look at investments and I plan on expanding number of units fairly rapidly due to the price of multiplexes and my current available capital. I love the idea of self managing from a $$ perspective, but am curious as to the workload I'll be getting into as we scale up to 10+ units.
Hello and welcome to this site! You are thinking the right way about property management. It does have a tendency to take too much of your income producing time and can make you not to want to answer the phone because of the fear that might exist in you. You do not want to have that fear when it might be a good lead. I would budget for an experienced mangement company and let them take care of the maintence calls and the background screening of prospective tenants.
I would rather be focused on income productive things and not spend time with my tenants and concentrate on raising money and leads. You might want to spend some beginning time on it to get use of the time and learning you'll need. Try to stay at work as long as you can because it might work with your loans. Not being a property manager and allow you the time to spend with your family.
That also allows you to invest in stuff that is not close and allow you more time making money. I live in Texas and am from Dallas but I have never been east of the Missippi River so I do not know about where you are in. I am 60 years old and have a bunch to say. I have lived in Dallas County most of my life and I am lucky to be here. Owning small apartment complexes can be better than SFH's because of any vacancies you might have to deal with.
SFH's and MF places both have there pros and cons but owning rental property can be a good thing. Putting positive cash flow and the more control you have tends to do better than the stock market as far as investing goes. You might have to be always learning but that beats working just for somebody else and just having bad debt. Going into debt that has positive cash flow is the way to go. Another place where there is a bunch to learn is YouTube videos if you have not found it allready.
Know the market you select well and know it's best locations. Just do what is average in that neighberhood. Always remember to do the math analysis and try to look at your prospective properties before you make any offers or at least have a clause in the sales contract that allows you the time (about 10 days) to make a detailed inspection and possibly back out of the deal without a penalty that hurts you too much.
I have a bunch more to say but I better stop before going too far right now. If I can do anything to help your please contact me through this site. I am on here just about everyday. Good luck to you on whatever you select!
@Matthew Koch Also, what does your tenant class look like? Can they use an online payment system? Use an online portal to make maintenance requests that you can just forward to your handyman?
Is the market really good fro rental properties? Will you have to show your homes multiple times to find a good tenant or can you do one open house and get a few great applications from the one showing?
Some home are just more management intensive than others. Some, you can simply put some systems in place that will greatly reduce your own time comittment.
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