First rental property

3 Replies

If your long-term goal is to invest in more properties it is worth it to invest in a solid property manager. 

Your time as an investor is infinitely better spent analyzing markets and deals. 

You want to move up the 80/20 leverage curve from technician to investor/entrepreneur.

In Bridgeport, CT the investment is about 10% of rents collected which frees you from taking resident phone calls, coordinating maintenance, leasing vacancies, bookkeeping and accounting P&L's, conducting inspections and making property payments.

@Bradley Partin I manage 300+ rentals so my opinion is somewhat biased. However, I'm also an investor with 20 units (21 after 10am tomorrow!) and was an investor before I became a manager.

What you don't want to do is derail your investments. As a beginner, it's easy to underestimate the costs and overestimate your abilities. One bad tenant can cost you $5,000 - $10,000 in losses without even trying hard. If you are good at standing your ground, learning your law, developing processes, application screening, studying the market, and all other tasks involved then it may be worth trying it on your own. If you are a complete beginner with limited knowledge and experience then I think it's best to hire a professional until you're in a better position to take over.

Even the most experienced investor may be wise to use a property manager because the PM can handle the mundane day-to-day tasks while the investor focuses on building the business.