Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
I am looking to get a property owner financed... When i send out direct mail, i only have about 100 different people to mail to that have 100% equity. I was going to go further out of my state, maybe across the country to potentially find a good deal..
If you do not have first hand experience with managing a rental you could have a great deal of trouble managing a PM. Many investors will go through multiple PM companies before they find the right one and some will fail before they do.
Devin Mann Well, you'll give up (on average) 10% in gross rents if you want a PM instead of self-managing. That said, I don't know if you want to self-manage and also if you're radius for the 100 properties is 5 miles or 3 hours. As soon as you're an absentee owner and can't (or don't want) to drive by on the weekends you're in the same boat. PMs can be hit-and-miss and out-of-state makes it harder to get referred to a quality PM.
Across the country is a little different because you'll have to factor in 2 trips a year just to "keep an eye on it". So factor in another $2K-$4K a year in expenses for flights, hotel, car rental, food, etc. If the cash-flow doesn't support that expense you probably want to stay driveable.