Rental Property Investor · Phoenix, AZ · Member since 2015 · 224 posts · 50 votes
I use a property manager for my small multifamily buy-n-holds and I calculate that into my expected expenses for any potential purchase, as I should. I'm sure that I am competing out there with other buyers who do not calculate that expense line since they will self manage and can potentially offer more for the same value.
Should I stay the course and just keep offering based off my actual numbers that I know will be true expenses with regards to PM cost and wait for the right property accept an offer?
Or should I rethink my strategy and make some adjustments somewhere in my process so that I can stay competitive? For example, reduce my ROI goals slightly to account for a higher offer to be made.
On one hand, I just keep making offers with the numbers that work for me and eventually I'll get a bite. On the other, reduce my return expectations knowing that I will be putting in less time than someone who self manages and I will be using that time to pursue other investments.
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Ryan Moore there is no wrong answer. I believe in quality verses quantity so I would take less ROI if the property is of better quality. Also it depends a lot on what your money is doing for you in other investments. For example If you have a 401 K that the company matches then you need to calculate what that return is verses what the LONG TERM return is for RE investing. Maybe you do need to reduce your expectations. Regardless what you choose I would rather see you take your time and buy right verses buy just to buy.