Working full time while owning Buy & Holds

20 Replies

I don't have any properties yet but my goal is to acquire buy and holds while I work my full time job. I am wondering if anyone who does this has advice or comments about this scenario. Is it harder than you thought? Do you use PM? How many properties do you have in your portfolio? Etc.

I only have two, but I have friends who work full time and have dozens.  I estimate each unit consumes about 20 hours per year.  Mostly doing showings when you have a turnover.

Jon Holdman, Flying Phoenix LLC

Originally posted by @David Stergiou :

I don't have any properties yet but my goal is to acquire buy and holds while I work my full time job. I am wondering if anyone who does this has advice or comments about this scenario. Is it harder than you thought? Do you use PM? How many properties do you have in your portfolio? Etc.

 Hello I have 4 sfr right now 1 on the way. I manage them myself and work 40 hours a week. There are some good and bad days. But overall positive if your cash flowing.  If your going to manage yourself you should make the property efficient... so not all the calls. Examples would be change all locks to doors with Kwikset brand. You can rekey your own lock easy.  I change all plumbing shut offs to fixtures so no dumb leaks. I also add a automatic bath fan in all bathrooms to get that moisture out. If its not automatic it won't get turned on. I have also learned you need to screen screen tenants. Hope this helped.

I work full time and have 3 rentals.  The most time consuming part is showing property, but I'm just careful about scheduling.  I also try to avoid wasting my time so that I tell the applicant that I will call them an hour before the appointment to confirm.  I have an hour commute from my work to my properties, so I tell them that if they don't answer or call me back right away, I'm not going to leave work.

For repairs, I find that most tenants prefer to be home when I come over, so they are all fine so far with doing repairs nights and weekends.

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

I believe the toughest part of owning investment properties is after the closing. You have to start  the rehab so you can quickly rent it out before that first mortgage payment is due. It's not easy when you mostly work 50 hours work week and do most of the work yourshelf. I haven't had that much troubles after renting it out...few minor inconveniences no big deal. It's all worth it due to the cash flow.

Originally posted by @Sergio Garcia :

I believe the toughest part of owning investment properties is after the closing. You have to start  the rehab so you can quickly rent it out before that first mortgage payment is due. It's not easy when you mostly work 50 hours work week and do most of the work yourshelf. I haven't had that much troubles after renting it out...few minor inconveniences no big deal. It's all worth it due to the cash flow.

 To lessen your burden you can have your mortgage banker/broker structure the loan to close "into the month," a few days like  May 4th. This strategy doesn't lessen the cost of interest but what it does is it spaces your first mortgage payment "farther," out.

In this example, your first mortgage payment would be July 1st 2015 and would in effect give you nearly 55-56 days to do your rehab before you feel the burden of the first payment.

Closing "into the month," means you pay interest from the 5th till the end of the month.

Medium new american funding logo  Albert Bui, New American Funding | [email protected] | 949‑514‑5106 | http://albertbui.com | CA Lender # 345453, WA Lender # 345453, TX Lender # 345453, TN Lender # 345453

Originally posted by @David Stergiou :

I don't have any properties yet but my goal is to acquire buy and holds while I work my full time job. I am wondering if anyone who does this has advice or comments about this scenario. Is it harder than you thought? Do you use PM? How many properties do you have in your portfolio? Etc.

 If you have a good PM company and buy properties with enough cash flow spread between monthly out go and monthly in flow you will not be spending 20 hours a week as someone mentioned per unit.

I do about 3-10 emails a month and make about 1-2 calls sometimes none if all is on track. On months or times when there is vacancies to fill you may have to be calling in weekly or multiple times per week to discuss the PM's plan to lease up your units so you may be doing more calls or emails.

Medium new american funding logo  Albert Bui, New American Funding | [email protected] | 949‑514‑5106 | http://albertbui.com | CA Lender # 345453, WA Lender # 345453, TX Lender # 345453, TN Lender # 345453

Thanks for all the feedback. My plan is to use an FHA loan to buy a duplex, live on one side and rent the other. Than after a year buy another duplex and do the same thing. I think during those times I will manage them myself. But after the year is up on the second one I will hopefully buy my actual home. Than I will start buying buy and holds and once I get a few, I may look into PM. In all of my analysis I'm going to include 10% to ensure I still cash flow with PM. Thanks for all the input everyone!

@Dave Krage , excellent idea on the bath fan.  Such a simple thing, but great advice!  I never would have thought of that.  Thank you sir.

Sometimes it can be harder then you thought.  If your personal responsibilities, your rentals, and your day job collide you can wind up overwhelmed.  I have received calls on things when traveling for business that need to be taken care of right away. Two important things are to decide how much you can actually do on nights and weekends and have a call list for those things you can't do.   Also train your tenants to have some perspective. Light bulbs are not an emergency..

Originally posted by @David Stergiou :

I don't have any properties yet but my goal is to acquire buy and holds while I work my full time job. I am wondering if anyone who does this has advice or comments about this scenario. Is it harder than you thought? Do you use PM? How many properties do you have in your portfolio? Etc.

 I have one and looking to buy a second shortly.  I focus on higher end rentals in nice areas (even though they cash flow less).  I factor in "return on effort" when evaluating rentals and in high end areas tenants are easier to manage.  The last thing I want to do is to spend a lot of time and effort managing my rentals.

I work full time and have 6 rentals , its a PIA but its a bunch of checks on the 30th . 

Originally posted by @Russ Beck :
@Dave Krage, excellent idea on the bath fan.  Such a simple thing, but great advice!  I never would have thought of that.  Thank you sir.

 Panasonic fans they have 2 speed models look them up been using them for many years.

I currently have 1- rentals, but have had as many as 14 at one time, and have managed all of them myself and have done most of the maintenance myself.   It can be overwhelming when everything breaks at once, and most of the time it is when  I am working.   I do put in my leases that the tenant is responsible for the first $75 in repairs, that way I am not getting calls to come change a light bulb, and minor things like that that anyone should be able to fix.  I also have a list of repairmen to call when I don't have time to fix things myself.

I have a full time job and a 4 unit . I also submitted an offer today for a SFH. The first year I owned my rental it was WORK! In the first 90 days of ownership I think there was only 1 or 2 days I was not at the property. I live a hour away from my job. I communicate a lot with my tenants through texting. Whenever I need to schedule a repair or meet the exterminator I usually do it for 4 O'clock because I know if I leave my job at 3 I can meet the repair person/ technician and be there last appointment of the day. Tomorrow I am taking a half day vacation to ......

1.  Have my annual building inspection done by my municipality

2. Meet the gas man to read the meter

3. Have a technician fix the fire alarm

4. Meet the exterminator

5. Collect the coins out of the washer and dryer

6. vacuum the hallways.

It also helps to have a reliable handyman that can just go by and take care of things you just don't want to do or have the time to do.

18 checks on the 1st of every month.

Have any of the people who said it can be hard and stressful considered hiring a property manager? Do you think it would be worth it to relieve the stress and constant work? Or do you think PM are to expensive. I would love to hear from the community in this scenario! 

I'm currently at 1 and just put my second under contract.  I work like mad at my day job but still find time for my properties.  I just think you've got to be really good at time management.  

You're only at work 1/3 of your day and just like finding the deals you'll find the time. 

I have 15 and work full time. Pay my PM 8% per month and collect the checks. I wouldn't change a thing. Just remember that if you're going to self manage still factor in management costs into your calculations. You may find out you don't like managing and you'll need to be covered. 

Hello David. I like your idea of buying buy-and-hold properties while maintaining your full-time job. I have been doing this for about nine years. I now own 50 units and manage all of them myself. I own properties within 30 miles of where I live in four different towns. The beginning stages of this process were tough because I was doing some of the upkeep. I never was the maintenance guy on my properties but I was the painter and the guy that would get properties ready to be rehabbed etc. As my portfolio grew I was able to hire a painter and a cleaning lady etc. My role in my company now is to fill vacancies, collect rent, call the right people to fix whatever needs to be fixed, communicate with the bank on financing and interest rates etc., and look for more properties to buy. As your portfolio grows you will physically work less but your role of managing properties and people will grow significantly. I basically run my rental properties from my cell phone while I work 50 to 75 hours per week depending on time of the year. Good luck to you.
Originally posted by @Dave Krage :
Originally posted by @David Stergiou:

 I also add a automatic bath fan in all bathrooms to get that moisture out. If its not automatic it won't get turned on.

this is a real good on actually, thanks

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