Currently, I manage my own properties. I do factor in 10% in my analysis when purchasing properties. Just curious how many self managing investors out there manage their own properties and up to how many units? Is there a rule of thumb for # of units you manage before sending to a professional property manager?
when you say manage it comes down to how much you can do yourself,, and how close the buildings are to each other,, We had a 5 plex, and 6 plex that were about 1 mile apart, we did all the work, lawns, snow, apt turns and all leasing,, and we had another property with a 4 plex that we lived next to, all were 1 br units.... The bookwork wasn't a issue that always got done,, We turned the apartments painted, cleaned ourselves and hired help if needed. We kept track of what was going on in the buildings and our tenants were the most part good longer term tenants.. All I can say is the more spread out your buildings are the harder it is to physically get to them and time is money.. spending it driving between several SFH miles apart makes no sense to me.. I rather have a 12, 18 or 20 unit building,, its just more efficient. but we had those buildings for over 40 years..
I agree with @Deanna McCormick . Is this your full time job or are you doing it on the side. If it is what you do full time and it is in the same town you can do quiet a few on your own. My experience is that if this is your side gig 8-10 SFR is about the max that you can do well and not start to let things slide. If you have a good career or high paying job you just have to decide if your self management duties is taking you away from that and having a detrimental impact on your income. If you feel that is starting to happen turn it over to a full time professional.
Also to mention,, we did our buildings on the side.. we all had full time other jobs and ran the properties as side business..
Thanks @Deanna McCormick and @Tracy Streich . Our general business is real estate investing and software. So we build units, sell some and keep some for rentals, flip homes and the typical. In otherwords, I am not nor want to be, a Professional Property manager. I only manage my own. They are somewhat spread out across the city with one in FL. I'll just keep a finger on the pulse and when it gets to the point where it negatively affects my core investment progress, that will be the time to hand it off. I was curious what the magical number range was for others.
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