How Long Do You Want To Do It?

Question

Soon to be 59...I've been a landlord for a long time...looking down the road.

Wondering how much longer I want to do this. I've invested in other asset classes along the way. RE has been the best to me of all the classes, but...

Do I want to be doing this at 70?

Hiring a PM doesn't interest me, can't see it...

What's your exit plan?

How long do you want to be doing it?

Arnie Guida · Answer

Dawn,

What?

You didn't start with one.

I didn't start with one.

My Parents didn't start with one...

I don't think I understand what you're saying.

To your other point, it's not a matter of trust. It's a matter of justifying the expense. As you know, I'm retired, so my time is my own...running two 4's and a single is a walk in the park...Most months there is absolutely nothing to do but go to the bank to make deposits. ;-)

Plus, no one watches over, and cares for, your possessions like you...

When I look at a property, 99 times out of 100, I can tell you if the owner is managing it, or a PM. What's their motivation? $$$

That's not my primary motivation...My rents are very fair, I make enough, I've got more than I need...why be greedy and increase my workload?

If the other buildings on my block are all PM managed at let's say, $800/mo...and they're charging 10%, why not discount my rent a little and have my pick of tenants, plus, they know what the other bldgs are charging, what few vacancies I have are often filled by neighboring bldgs...  they know they're getting a deal and will stay a long, long time...

I'm sure there are some PMs that care more than others, but I'd just be another account.

My rents are very fair, my tenants are long term, we address each other by our first names, they know where I live.

I've got to believe my turn over would be much higher with a PM, and my building's condition would go downhill.

If I could no longer care for my properties, I'd sell and increase my financial holdings.

Respectfully,

Arnie

Dawn Brenengen · Answer

@Arnie GuidaI have a lot of PM clients who only own one home.  They are treated the same as the clients who own many!

Michael Noto · Answer

@Arnie Guida Maybe you can move into he lending side by tapping into the relationships you've made during your years of being a landlord? Buying notes maybe? Just some thoughts.

Bhekizwe M. · Answer

i'll be swinging it for as long as possible.great to learn affordable rents keeps tenants longer and notes/owner financing etc may give opportunity to those seeking home ownership

George P. · Answer

I am confused.. you asked a question then you started arguing and telling what they should and should not be doing.

why bother then?

David Dachtera · Answer

As long as you can verify that the property incomes justify your asking price in the eyes of my commercial lender, sure - I'll help you escape your "self-made prison".

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Arnie Guida · Answer

I'm not greedy with RENTS...

Selling the bldgs?

Full market value... ;-)

Allen Mock · Answer

Arnie, it sounds like your mind is made up and you want out. What kind of properties are you looking to get rid of. Single family homes you could offer to sell to the tenants on contract or have them get a loan depending on what you want. Multi family would be a little more difficult to find the right buyer.

Looking back over your posts it looks like 2-4 units and a single. You said you are not greedy so just dump them on the market and see what happens.

Dawn Anastasi · Answer

I don't think that's a fair assessment.  How do you start, other than start with one?  Doesn't mean they aren't going to get more, or maybe having one property is enough for them.

And you're wrong about being "too small" for a PM.  I know someone who only had one property with a PM for 3 years.  The PM worked with them no problem.  Now they have 6 properties with that PM.

I understand it's hard to give up control.  But sometimes you have to put your trust in people to hire them to do a job for you.

How Long Do You Want To Do It?

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