Out of state investing - Hire a property manager / Self-Manage + Home Warranty

[Carissa Atendido]

Hi all!

I'm in the process of securing my first investment property in Texas, while living in South Florida, and I’m debating whether to hire a property management company or self-manage with the support of a home warranty.

Since it’s just one door, I’ve heard from others that self-managing is doable for your first property—especially with the right systems in place.

For leasing, I was planning to handle the tenant screening myself by:

• Requesting 4 months of bank statements
• Running a credit check (through my lender)
• Calling references personally

I recently purchased a home warranty for my primary residence (Choice Home Warranty - I still have 30 days to cancel so any feedback would be appreciated! lol) and was planning to get one for this rental as well, to help cover maintenance requests and give me some peace of mind that the repair will be handled properly.

Also, if I were to self-manage, are there any property management software that anyone would recommend that's affordable and doesn't equal the 10% fee PMs usually charge?

Any feedback on this approach?
Also, if you’ve used a home warranty for an investment property—did it work well for you? Any positive (or not-so-positive) experiences you'd be willing to share?

All advice is welcome—thank you in advance!

[Allan C.]

Home warranties are worthless. Just think, those companies are in it to make money, and they can only make money when customers lose money. Warranties may feel like a nice security blanket for the first time owner occupier, but they will cause you headache and cash as an investor. 

it's better to just hold adequate reserves and have trusted trades-people on hand to deal with rental maintenance. You need a reliable and honest handyman, plumber, electrician and HVAC company. 

there is also no need for management software at this point. Just organize your file folders, learn basic excel skills, and be disciplined with keeping receipts.