A 10% PM fee on 1800 rent , assuming 20% cash-flow margin before it gets applied, consumes 64% of the pre-PM cash flow. Since the PM fee is applied as a share of the GROSS rental income, its impact is disproportionately high - in this case more than half of your cash flow is eaten by, or more correctly said, feeds the PM, not your pocket. And to get the same annual cash flow target (e.g. 100K), you'll need 65 properties (at 50K per property capital for DP) to sustain paying the PM vs 24 if you self-manage. That will require $2.05M more in capital. The convenience of a PM is really expensive.
