Property Manager for first time renter??

[Julia Williams]

Hi! I'm 21 years old and I bought a house a year ago that I'm currently living in. Im looking to rent it out and move back in with my mom for a bit. I bought my house for $117,000 and it not in the best area (Eastpointe, MI). Its a 3 bedroom and 1 bath, its got some issues like an old AC unit, little bit of water in the basement after rains, old fridge, dishwater, bathtub, tiles and a yard that needs lots of work. My mortgage is about $900 a month and houses in this area rent for about $1000 - $1300. Im a bit nervous of being a renter for the first time because I'm not exactly sure how to do it like; the legal things I need to do, if the house is in a good enough shape, if have enough money to start, and if I should get a property manager or not. I feel like a need to a property management company because Im not sure how to do this haha. 

I could use some input on if I should get a property manager or not, what legal things I have to do to become a landlord in Michigan, and any other advise would be greatly appreciated!! 

[Colleen F.]

@Julia Williams you are planning to be a first time landlord correct?  Did you buy this with an owner occupant loan?  And now you are feeling overwhelmed money wise?  So to sell if you have a gain in value and not pay for any gain you should live in the house 2 of the 5 years before you sell. Do you think that it will matter or is the house valued similar to when you bought it? 

As for a rental your house doesn't sound like it would be a great rental because you are going to need to repair things to get the highest dollar amount for a rental and that is what you need. It isn't just the mortgage you want to cover, the PM will cost maybe 10%, and you need to set aside money for repairs. So your best bet is to clean up the property before rental and address any issues. Interview several PMs to see if it makes sense to rent and who is a good PM to work with. Don't sign with anyone until you are sure and you have made recommended repairs. You can search the forums about interviewing a PM and get lots of good advice.  

Another thought, have you tried renting rooms if this is a financial issue?