Day in the life of a owner

San Francisco, CA · Member since 2017 · 35 posts · 42 votes

Hi,

I was hoping to get some insight about post purchase of a property. I plan on the owner occupied approach and using a property management company. I was wondering what is it like having a property manage compared to not using one. Amount of money I should have available for emergencies and other costs associated with general ownership.

Mike

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James McGovern

Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 409 votes

The amount in reserve is highly dependent on the property and any deferred maintenance

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James McGovern
Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 409 votes
1y
The amount in reserve is highly dependent on the property and any deferred maintenance
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- Sheila Sumter
  Member since 2025 · 1 post · 1 vote
  1y
  Quote from @James McGovern:
  
  The amount in reserve is highly dependent on the property and any deferred maintenance
  
  What would you consider a minimum reserve amount - assuming fairly minimal deferred maintenance? Is it best to use a percentage of the property value or number of months of payments if financed? Thank you
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- James McGovern
  Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 409 votes
  1y
  @Sheila Sumter I would reserve a minimum of ten percent to cover maintenance and another twenty percent to cover insurance, tenant exodus, legal fees and other misc issues
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Mike Schelske huh?
Owner-occupied and hiring PMC?
Hopefully, you mean you plan to buy a 2-4 unit, live in one unit and hire a PMC to manage the other unit(s).
Your biggest challenge will be hiding your ownership from the other tenants.
Why?
Because the tenants will just contact you, even knock on your door at 1am, if the PMC doesn't give what they want. This will then undermine the PMC's authority and if tenants are contacting you about almost everything - what's the point of having a PMC?
As to funds - what's the worst that can happen that won't be covered by insurance?
Roof needs replacing
Sewer or water line needs replacing
Furnace needs replacing

If you can verify, via formal inspection, that all these have several years of life left, then you probably only need a few thousand for other types of repairs.
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