I’d recommend getting a property management company involved. If you’re seriously having trouble, consider selling one or two, bringing a prop manager on for the remaining and then reevaluating your metrics. Property management companies near me charge between 8-10% and we factor that in when we evaluate a deal.
What exactly is stressing you out? Elaborate and explain the issue and hopefully we can help.
No offense, but 3 properties is a cool breeze, on a hot day, walking on the beach!!
Start working with virtual assistances
Give me an amount you feel comfortable letting them work with have them call vendors or deal with tenants.
Attend a Property ￼ management courses
Look up some local property Management companies
And start call them and ask for some pointers!
And I always recommend finding a few core people and have them pay themselves aka give them the opportunity to bonus or create value for you which in turn creates value for them!
Not sure why people are telling you to sell when you have not mentioned all causes of the stress. It's not an easy process and when things go wrong which is a natural part of this business, it doesn't automatically mean you have to sell or cut and run. If you present those issues, it's hundreds of years of collective knowledge and experience here to help you mitigate it. Also, as so many mentioned, a quality property manager will take away nearly all the stress if they know what they are doing.
@Jayden Hamilton For me, having a property manager is worth it. The only challenge is finding a good one.
If PM is bad, you need to change them because your stress will be more than without a PM.
If PM is good, your rental literally becomes passive income because don't do much.
@Warren Swede the only thing you specifically mentioned stressing you is a tenant, don't renew. Not wanting to pay contractors isn't a reason not to hire them. You have the money to do it, save yourself time by hiring them, time is money. You will make the money it back.
Think you intended to reply to the OP, but I agree with you
@Jayden Hamilton Hire a property manager.
What is so stressful? I rarely ever hear from my tenants, and they all pay on time.
Stress is a part of owning rentals. As far as being disrespectful, do not take anything personally, inspect property before renting, fix what ever needs to done and choose time to select tenants. Do not put the first warm body. If you own low end rentals, sell them and buy something in a better area in good schools. Stable people make good renters. As far as property manager, I personally am not a fan of them.
You guys may want to read the OPs post history before your spend time here.
Congrats on the success at such young age. You can make money from RE in different ways. You don't have to own rentals to make money. You should find what interests you and what you are good at and items you are not good at then sub out. I understand where you are coming from. I was 21 years old in college and had a very successful business that grew to over 70 employees but age is nothing but a number. It's about mindset and how you carry yourself.
Don't beat yourself up and think you lost because you hate to manage or do the rehab/repairs yourself. But dont fool yourself into thinking bigger is better or easier. So many people talk about Multi-Family but by the time they get to pay off bills, investors out they are left with less money than the risk/headaches are worth.
If you DM me can share how to overcome being only 23 and trying to do rental business.
Best of luck
It sounds like you should hire a property manager and not interface with tenants.
I went through the same thing. I think you have "Superhero Syndrome" like I did. In business, you need to focus on Who can help you grow, instead of How can you do it yourself to save a buck? Took me 15 years to learn, but once I made that mindset switch, I was able to grow exponentially with my business.
What are you defining as stress? What’s causing you stress?
First let me say I sympathize. As a thrifty Midwestern kid my instincts about saving money and DIY are exactly the same as yours. However, having been in your shoes, I’m now realizing that (although not easy to find) good contractors are out there who will do good work for a reasonable amount, and that sometimes spending some money will save you SO much headache and stress so that you can finish a job or turn your attention elsewhere. Hang in there, it’ll get better
Terrell Garren Rental Property Investor from Concord, NC
replied about 3 hours ago
You guys may want to read the OPs post history before your spend time here.
What because I'm a young guy trying to obtain as much information as possible legally? It goes to show who you are as an investor and your maturity level for your age. Terrell, that's all, move on.
Dude…hire people to do what you are not good at or for areas you do not want to grow in. You are not saving money by adding stress and doing a 1/2- great job at the other stuff. Besides if you want to grow you need a team (and a life). Invest in contractors and a property manager- you are investing in your future- and do some good work at school or take a break. I get you are just starting and want to learn the ropes, but stress is no bueño.
@Jayden Hamilton he means sub out - hire someone to help. I’ve got 2 and found a very reasonable handyman that does mine. The right people helping is a gift from
You could also consider investing in a triple-net lease commercial property. In general, commercial tends to be a lot less hands-on, and the huge benefit of triple-net is the tenant (usually a Fortune 500 company) pays all expenses, including taxes. However, I don't know a ton about how to find these kinds of deal, and let me know if you figure it out haha! Another idea to consider would be getting a property manager. If you want to get your time and happiness back, it is worth the expense. With the appreciation and cash flow you are getting, you will likely still make something but have way more time. Isn't freedom and working less why most of us want to get into real estate in the first place? With scale, getting property manager(s) is inevitable. Good luck to you!!
I worked 60 hours a week at my day job and managed over 20 rentals with zero help - in my 30's.
So, hire a mentor or sell.
@Jayden Hamilton It sounds like the answers to your problems are already in your comments more or less. You have $100k for reserves but you don't want to pay a contractor to make repairs? With that cash and a property being paid off you can't hire a property manager? You don't have a money issue, you have a time management issue. Take it from the successful gurus. They never try to do everything themselves. They build teams of people and develop systems that keep the wheels turning so they have more time to spend with family and doing things they love. I'd seriously research better time management strategies but hiring a property manager and paying contractors are 2 simple solutions alone that will probably at minimum cut your stress in half.
"Being rich is measured in dollars. Being wealthy is measured in time."
P.s. Don't sell your properties. You can live off the income when you retire.
I am far more interested in knowing how in the world you accumulated the properties and all that cash at such a young age.. impressive for sure.
Sometimes you have to look past the amount of money you are spending and look at the value of the service being providing. You could spend your time finding amazing deals but instead you are dealing with tenants and rehabbing your property. Additionally, if you burn yourself out imagine all of the potential money on deals you will miss out on because you wanted to save 10% on property management. I think you have to change your mindset if you are going to scale. You can also leverage technology. There are free apps where tenants can pay rent and automatically be charged late fees. Best of luck. Don't give up. Keep at it. It will get easier.