Looking for advice in the rental property area.

Columbus OH · Member since 2021 · 8 posts · 8 votes

I'm a newbie and I've been working on paying down some debt in order for me to look like a good borrower with my first rental property. I want to know if it is a good idea to outsource all of the things that come with owning a rental up front meaning should I pay a property management company up front? Or should i manage the property myself starting out will this give me a clearer understanding, or would it be a headache in the long run? Would love to hear some advice from you experienced investors thanks for your time have a great day.

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Nathan Murith

Investor · San Rafael · Member since 2020 · 376 posts · 274 votes

hey @Larry Wilkes, welcome to biggerpockerts and congrats on getting started and doing the work!

It really is personal to you and what you want or are looking to do. The more you outsource, the more passive your investment can be. The less you outsource, the more learning and hands-on you can be.

Even if you do end up managing yourself, I would recommend setting aside 10% of rents to "pay" yourself as the property manager, ensure you are indeed walking into a good deal, and to set yourself up for transferring the properties to a property manager if you did want to end up doing that one day.

there are some good alternatives and "in-between" things you can do, like using a tool like hemlane. That platform is basically something that is in-between property management and self-managing.

in any case, happy to share more about our experiences, successes, and failures. We pretty much only use property management. if you want to chat more, do not hesitate to reach out, connect, and DM me.

cheers

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Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
hey @Larry Wilkes, welcome to biggerpockerts and congrats on getting started and doing the work!
It really is personal to you and what you want or are looking to do. The more you outsource, the more passive your investment can be. The less you outsource, the more learning and hands-on you can be.
Even if you do end up managing yourself, I would recommend setting aside 10% of rents to "pay" yourself as the property manager, ensure you are indeed walking into a good deal, and to set yourself up for transferring the properties to a property manager if you did want to end up doing that one day.
there are some good alternatives and "in-between" things you can do, like using a tool like hemlane. That platform is basically something that is in-between property management and self-managing.
in any case, happy to share more about our experiences, successes, and failures. We pretty much only use property management. if you want to chat more, do not hesitate to reach out, connect, and DM me.
cheers
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y
@Larry Wilkes IN addition to what @Nathan Murith states, you should also do a SWOT analysis on yourself and be honest about the time you'd have to DIY manage.
The #1 mistake we've seen DIY'ers make is ignoring problems due to their time contraints or personalities.
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
4y
Best of luck to you Larry. Ohio is a good state to be a landlord. I believe this is a universal truth= If you want something done right, do it yourself. No one will care more about your property than you. Are you handy? Are you assertive, or a pushover? Cool or emotional? Willing to learn the local landlord/tenant laws? If your answer is no, then you're best hiring out. At the least, join a local landlord service and get yourself a good lease, and fill it up with additional restrictions to protect you. i.e., no pitbulls, one licensed vehicle on property, no noise, no alterations, no vegetable gardens, BBQ away from house, no pets, etc,. Ask other landlords for copies of their leases. Good luck Larry!
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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y
@Larry Wilkes
I would say if you live locally you should self-manage your first property to understand what managing entails. After that, I would just hire a PM and outsource. I personally don't think it's scalable to be doing all those things yourself. Also, I strongly encourage you to go to local real estate meetups and meet other investors and ask questions or just post more on BP with other questions you have along the way.
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