How do you make money with a PM?
I would love some insight to this as I am a new investor (don’t have a home yet). I know most don’t recommend using a PM but I see myself long term with 60+ units one day and would eventually use one anyway.
Ok with that out of the way how do you all make money with a PM? Am I being too conservative? I'm in the Baltimore area looking at homes that would rent for 1500-1800/month. When I make assumptions for vacancy (assuming it rents on avg 11/months a year with 1 months rent taken away from the PM), maintenance and cap ex around 250-300/month abs property management around 8-10%. With all that out the way I maybe walk away with 200/month and that puts me around 6-7% COC which is not great. That also doesn't assume the cost of tenant turnover which would wipe me out.
Am I doing something wrong here? I’ve heard of people getting 10-15% with a PM but I can’t make the numbers work. I would love at least 10%
With 250/month per door but it’s not looking great. Any advice would be helpful. Thanks.