The DIY Management Hypocrisy

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

1d

I’ve experienced success and observed success both ways. Early in my investing career when money was “tight” I put in the hours and effort self managing my investment properties. First of all “boy, did I LEARN a lot”. And what I learned proved invaluable in future investing and in “managing” the manager. Things that could not be duplicated in the classroom. So that’s one argument FOR self managing.

Secondly, assuming I was at least a semi competent property manager, the money saved was a necessary component of the cash reserve fund I built up allowing me to be able to survive economic downturns, longer term vacancies, etc. and still make the mortgage payments, pay the property taxes, and fund repairs.

Once I reached a certain financial point, actually quite early in my investing career, I utilized third party managers in the vast majority of my holdings, with a few "special circumstance" exceptions. The important points were that by then I had learned 90% of what was possible to learn about management and I had a sufficiently large reserve fund. I might have chosen to be more aggressive by utilizing that reserve fund to purchase more property, but without sufficient reserves I would have needed to self manage again to rebuild the fund. For me it's not about maximization of POTENTIAL wealth, it's about maximization of RISK ADJUSTED ROI leading to maximum wealth within a lower risk level and modified by my desired lifestyle.

I understand what you’re saying and agree to a point, but for me at least the points aren’t as “black and white”, I see a lot of grey area.

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Drew SygitBusiness Member
OP
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1d
I actually followed your path and then tried to hire a PMC and went through 3 that were barely competent.
Went back to self-managing my portfolio until LPM came along:)
So, can totally understand your point.
BUT, the big difference is all my properties are local, so I can be hands on.
Even with my 25+ years of experience though, I'd be hard-pressed to DIY manage an OOS property!
What about you?
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Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

1d

A combination of misinformation, or at least misleading information, from all of the gurus and recent newbs that just purchased and rented their first property, and pure, simple greed. They don't know what they don't know, but they do "know" they can fake it until they make it.

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Diana Khan

Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 339 posts · 124 votes

1d

Quote from @Drew Sygit:

Many investors want the highest ROI and cashflow possible on their rentals.

Many experienced investors recommend self-management to obtain this.

Totally understandable.

But, if an investor is trying to pursue the FIRE concept, retire early or have more financial freedom, why does it only apply to their rental properties?

Realistically, every argument for self-management can be applied to:

Making your own coffee everyday instead of going to Starbucks
Picking up your own food instead of using Doordash, etc.
Cooking all your own meals, instead of eating out
Doing all your own auto repairs
Doing all your own home repairs on your personal residence as well as your rentals
And many more...

Oh wait, you don't have the expertise or knowledge to do all those things yourself?

Well, 90%+ of investors DIY managing their own rentals don't have the expertise or knowledge to do so either.

But they're willing to gamble on learning as they go, hoping (or naively ignorant of the risks) that they avoid a catastrophic event.

So, why don't they learn as they go on all of the above, to save even more money and reach their financial goals faster?

Why the hypocrisy and short-sightedness?

@Drew Sygit, I’ve seen this from the legal side too. Self management can absolutely work, but the part I think gets underestimated is that landlords are not only managing repairs and collecting rent. They are also handling notices, deposits, lease issues, documentation, fair housing rules, and sometimes very difficult tenant situations.

I’ve worked with landlords who were doing fine until one small process was handled the wrong way, and that is when the cost of saving the management fee started to look very different. I do think there is value in learning the business yourself, but I also think investors need to be honest about where their knowledge ends and when it makes sense to bring in help.

I’d be glad to stay connected, @Drew Sygit . I like this conversation because the real question is not always whether someone can self-manage, but whether they are managing the risk well enough to make it worth it.

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Jim Johnson

Real Estate Agent · Memphis · Member since 2026 · 545 posts · 315 votes

22h

I wouldn’t necessarily call it hypocrisy. People outsource the things where the cost of doing it themselves outweighs the value, and that line is different for everyone. Someone who has the time, systems, and experience to manage a few rentals well may be making a perfectly rational decision to self-manage. The problem starts when “I’m saving the management fee” is the only calculation and there’s no value assigned to their time, mistakes, or risk. At that point, the cheaper option on paper may not actually be the cheaper option.

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Divin KanyamaBusiness Member

Accountant · Seattle, WA · Member since 2025 · 188 posts · 57 votes

14h

@Drew SygitThere is a valid point here: financial freedom should be measured by more than maximizing the return on each individual property. The real question is whether self-management is the best use of an investor’s time, attention, and risk tolerance. A capable property manager can add value through leasing, documentation, compliance, vendor coordination, and faster issue resolution—especially as a portfolio grows or becomes geographically dispersed.

At the same time, self-management is not necessarily hypocrisy or poor judgment. Some owners have the knowledge, systems, proximity, and interest to manage effectively, and the savings may materially improve a smaller portfolio’s cash flow. Others may be better served by outsourcing, even if it lowers the property-level return, because it frees them to focus on acquisitions, their career, or family. The best decision comes from comparing the management fee with the true cost of the owner’s time, vacancy performance, maintenance oversight, compliance risk, and peace of mind. FIRE is ultimately about creating choices; for some investors that means managing personally, while for others it means building a portfolio that can operate without them.

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The DIY Management Hypocrisy

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