Hi there! I am a new mom and recently left the corporate world to start building out a RE investing business focused in the Lehigh Valley, although I am currently based right outside of NYC. I just closed on our first property earlier this year and am under contract for our first duplex. My husband has a stable W2 job so I am looking to qualify for REPS. Overall just really excited to learn more and would love to connect with other investors, realtors, etc.. in the area who might be interested in partnering on deals in the future. Also any advice on managing properties from afar would be much appreciated!
Congrats on the first property and the duplex. For managing from afar, I'd build the local team before you need it. Interview two or 3 property managers, ask what they charge for leasing, renewals, and maintenance markups, and call a couple of their owner references. Also line up a handyman and a local agent you trust, and use the inspection on the duplex to have a contractor tell you the age of the roof, furnace, and water heater so you can plan your reserves from day one.
Congrats on the first property and the duplex. For managing from afar, I'd build the local team before you need it. Interview two or 3 property managers, ask what they charge for leasing, renewals, and maintenance markups, and call a couple of their owner references. Also line up a handyman and a local agent you trust, and use the inspection on the duplex to have a contractor tell you the age of the roof, furnace, and water heater so you can plan your reserves from day one.
Great advice, thanks Jimmy! Luckily found a good agent and handyman and currently trying to self-manage before reaching out to property managers, but will see how far along I get
@Leah Stutz Congratulations on the baby, the first property and the duplex under contract, that's a lot to celebrate! For managing from afar, I'd focus on systems more than distance. A good local property manager is usually worth the fee, and a reliable contractor and agent you trust will matter just as much. Set clear reporting, approval limits for repairs and a regular check-in schedule, and keep a repair reserve so surprises don't become emergencies. Since you're close enough to drive in, a visit now and then to see the units for yourself goes a long way. On REPS, the time requirements are strict, so keep a detailed, real-time log of your hours and work with a CPA who knows the rules, since the details matter a lot. Just keep in mind this is my general take and not tax or financial advice. Wishing you the best as you build this out, and I hope you find a great local team!
@Leah Stutz congrats on the baby and the duplex. Lehigh Valley is home for me, my first big rental was a mixed-use building in the Coplay area. For managing from a distance, the thing I'd set up before you close is a couple of contractors you trust and someone local who can be your eyes and do a quick walk-through when something comes up. Start a new contractor with a small job before you give them anything big. And if you're buying in Allentown, plan for the rental license and inspection, because that can hold up a turnover if you're not ready for it. Hit me up if you need help or want to get on our off-market list. Keep us posted on how the duplex goes.
@Leah Stutz happy to. Send me a message here with what you're looking for, area, unit count, and price range, and I'll make sure you get added. Good luck with the duplex closing.
Congrats on the first purchase! With one property, it’s fairly unlikely you will qualify for reps but is possible if you do a lot of the work.
For now though, I’d recommend keeping a time log for your involvement in your property and reviewing with a cpa at least every few months to ensure the hours you put down actually count.
Best of luck on your real estate investment journey!
Congrats on the baby AND the duplex, thats alot at once!! Since you're self managing from NYC, ask your handyman to snap a few photos any time he's in there, even on a tiny job. You learn so much about the place without the drive.
Lean, Thats a great start. Lets connect. I do have some recommendations to share if that works for you. I do have a PML that we used on our previous deal. They did provide 100% financing for our deal. No down payment options. Fully asset based.
Leah, congratulations on the first property and the duplex under contract! You're getting started at a great time to build the right systems.
Since REPS is one of your goals, I'd start documenting your real estate activities now and have a CPA review the log during the year—not just at tax time. The fact that you transitioned out of your corporate role during the year makes it especially important to look at exactly how your time is split between real estate and your other work.
Also remember that qualifying for REPS is only one piece. You still need to look at material participation in the rental activities if the goal is to make qualifying rental losses nonpassive and potentially use them against your husband's W-2 income.
As you add properties, I'd also revisit the structure and grouping of the activities rather than assuming the same approach will work as the portfolio grows.
Feel free to DM me I’d be happy to send over a few resources that might be helpful.
Leah, congratulations on your baby! I’m a new mom too (my baby is 14 months old), and I left my corporate job this May to start my own tax practice for real estate investors and expand our real estate investments. It’s a lot to juggle with a new baby, especially your first!
We have a rental property in California and purchased another in Ohio this past July. We’re hoping to continue growing our portfolio while my husband keeps his corporate job. Our California property has been relatively easy to manage because we have tenants who take great care of it. The Ohio property, however, has needed quite a bit of work before we can rent it out.
One of our biggest challenges has been getting the renovations finished in time to find tenants before the holidays and winter, when fewer people may be looking to move. This experience has really shown us how important it is to build a reliable team and set realistic timelines, with room for delays.
Congrats on the duplex, and good luck with the close. One thing I'd add to what Jimmy said about building a local team: whoever you hire, set up one place where every message about each property lives. Tenant requests, the contractor's quote, photos before and after, and what was agreed on price. When you manage from a distance, the thing that goes wrong is usually not the repair, it's that nobody can see what was already said, and you end up in three text threads and an email chain.
A simple version is one shared log per property that you, the tenant, the manager and the contractor can all see, with a status on each request (open, scheduled, done). Even a shared spreadsheet or a shared folder works at two units. Once you have more doors, a small custom app for exactly this, tenant requests and contractor updates in one view, is something I could look at building if you ever want to compare notes. Happy to share what I've seen work. I'm an ex-construction guy who now builds custom software.