At what point could you step away?

1 Reply

Hi I'm curious, I currently have 3 units each "cash flowing" around 219 dollars a month each, I'm hoping to double that next year by getting 3 more units each doing 334 dollars a month then again the following year etc. So basically I'm hoping to get around 20+ units before I'm 30 years old each "cash flowing" around an avg. of 300 dollars a month. My question is when is a good time to hire a person to take over the property management...? Could I have enough work for him/her to work full-time/part time? Are there certain levels in which you could hire x amount of people? How much should you pay a person for this service? 10 bucks an hour? 15?

Originally posted by @Benjamin Allen :

Hi I'm curious, I currently have 3 units each "cash flowing" around 219 dollars a month each, I'm hoping to double that next year by getting 3 more units each doing 334 dollars a month then again the following year etc. So basically I'm hoping to get around 20+ units before I'm 30 years old each "cash flowing" around an avg. of 300 dollars a month. My question is when is a good time to hire a person to take over the property management...? Could I have enough work for him/her to work full-time/part time? Are there certain levels in which you could hire x amount of people? How much should you pay a person for this service? 10 bucks an hour? 15?

Do you have enough free time to dedicate to self managing a larger portfolio? Is there enough cash flow from your properties to be able to afford outside management?

When it comes down to it, it totally depends on how large you want to scale your business. The more units that you have, the easier it will be for you to hire the staff necessary to run your business smoothly without you having to work actively in it. 

My personal opinion is that 20 units is too small for full-time staff. I personally use property management even though I only have 12 units, but they act in a part-time capacity. 

I have been thinking a lot about this very issue, and I came to the conclusion that if I had over 60 units in one city, I would look at hiring someone full-time. Based on my average rents and what the management company charges me, at 60 units, I would be paying them about $2700 per month. I think hiring an employee at that point would be good because they would be focusing 100% on my assets, and I could pay them a competitive amount that would be less than what the management company charges.

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