What are common challenges we face when we try to manage multiple properties?
I think it depends, are these properties in your local area? Out of state?
Properties in your neighbourhood would be much easier to tend to as you can be on the ground whenever something comes up. I used to try to manage properties that were 2-3 hours away from me on my own. Now I use property management and am pretty much hands off.
Either way if you have properties in a number of areas you might be "managing" multiple property managers. This is part of the reason I am shifting to multifamily where I can have a single Property manager and all tenants under one roof.
Driving distance between your home/office and the properties will always be a big factor.
From a brokerage perspective, each property may require a separate management account, and some states require additional trust accounts based on how many management accounts a broker has.
We have just two response, but looks like primary problem is the distance.
Ease of management or difficulty of management in the markets I am in here in Connecticut is almost always directly tied to the class of property you are investing in.
Managing more than 1 very low income property is a serious drain on time for an investor in most cases, but the trade of is typically the cash flow on paper numbers are better which draws people in to these investments.
Over time, the more experienced investors I know gravitate towards properties that have a better tenant class base and while the on paper numbers may be a little bit lower their real life return numbers over the course of let's say a decade end up being higher than the lower income property. These are the kinds of properties i have started to acquire for my own investing as well.
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