First Time OOS Investor - Self-Manage or Hire a PM?

Question

Hi!

My wife and I plan on purchasing our first Out-of-State Property (about a 2 hour drive away) that is going to be a SFH in a small rural area. We have our agent, contractor, and lendor but we are now trying to decide if we should self-manage or hire out a PM for this first property?

There are pros and cons for both sides as if we hire a PM, it can help us transition into the real estate world without having to stress over tenants and other issues. However, if we self-manage, it can be a great way for us to understand about tenant expectations and realities, especially when dealing with only one family in a SFH.

So we wanted to ask the BP community which sides did YOU pick when first starting out and which side would you choose now in this current climate?

We have read Brandon's book (The Book on Managing Rental Properties) and would feel comfortable with dealing with tenants, but that is not our main goal as we plan on retiring early and using PM for each property we own in the future. Is it worth it to self-manage or is it too much of a hassle? Should we focus on learning these self-managing traits or just hire someone else to do it?

Thanks!

Cole Simpson · Answer

The main thing in my experience is cashflow, not much else. You are still making the decisions they are just executing.

Caleb Stevens · Answer

@Cole Simpson, is there anything that is gained when self-managing that could be used for future purchases? From the questions you provided, it seems like hiring a PM may be better suited since we both have full time jobs and don't really need the cash flow. But if there is something fundamentally learned from self-managing, then we are all for it!

Cole Simpson · Answer

How quickly are you trying to scale?  How much is your time worth?  If you need the cashflow then self manage but if your time is very valuable because of your job or so you can scale quicker I would recommend a property manager.