Hi everybody, I am a recent college graduate and am new to real estate investing. Im trying to gain some insight into the thought process of some successful & knowledgeable investors here on BP. I had a few questions that I really want to be able to answer for myself, and your insight will really help me to do that.
1) What does buy and hold investing mean to you?
2) What sites/publications do you use to stay up to date with industry changes?
3) What are some issues you have faced with tenants that differs from the norm (not paying on time, filling your property, etc) ?
4) What are some issues you face managing your rental properties
5) Im considering using a Property Manager, but I have heard a lot of bad stories, what has your experience been using one, if you have ever used one?
1) Buy and hold investing means slow and steady increase in wealth and passive cash flow over time. Not get rich quick by any means, but a solid plan to gain financial freedom that is proven to work.
2) I like biz journals, city data forums, and demographic sites to stay up to date with trends and business development news in my area. Along with biggerpockets of course!
3) I've had tenants pay a few days late but I make sure I always charge them the late fee which ends up working out for me in the end. Never had to evict anyone yet. I've found that it is tough to fill units in the winter in colder areas.
4) Finding and managing contractors has been my biggest challenge with managing rentals. Also when more than one unit gets vacant at a time it can become pretty hectic when self managing.
5) I haven't used a property manager because I know they would not treat my property the same way I would. I plan on using on once I get too many units to manage myself though so that I am able to scale.
Buy-and-hold is the only strategy that leads to long-term immense wealth. It is the lowest taxed and gives you income as long as you're willing to hold. No matter how many flips you do, you still have to go out and do another one if you want paid. If you buy a couple hundred Rentals you can live a very nice life.
I read dozens of publications. Listen to multiple podcasts a week. And spent 2 to 10 hours a week in meetings with other successful investors.
The question you should be asking is what can I read to help me get through the problem I am having today. And then tell us what the problem is.
Are use a property manager. If you want to get bigger than about 50 units you will need to have one. You still have to manage your manager. If they do not know what you want they cannot help you get it. And yes there are very bad management companies out there. Get references and learn how they do things before you hire one.
As for tenant problems, you will never know all of the problems that you can have. The question that you should be asking is, is it worth it. The answer is absolutely yes.