All Forum Posts by: Lee David

James - Agree with everything that you say.  I can definitely do the admin stuff pretty much anywhere and a good handyman would be a huge help. Actually, I tried using this type of service several times a few years ago, but ran into some issues. Without getting into it now, I will only describe it as comically bad. That soured me on Handypeople, but now I realize that I need to renew my search as it will help me grow further. The good thing is that I can now afford to pay someone who is more professional. The other huge time waster (and I think that a lot of property managers will agree with me) is the showing/leasing aspect. For this, I am considering working out a deal with my RE agent. I could do the pre-approval process, he could show, and then I could process the application. Or some derivative thereof.  Also like the aspect of forming my own management company - that would definitely put me in the drivers seat. The downside would be dealing with employees or other owners should I expand in that direction. No venture is perfect, though, and I'm definitely keeping an open mind. 

Tamiel - I do like the idea of syndication, though I will need to educate myself a little more about it. I am a hands on type of person, which is why I have a truck full of tools. I think, though, that I will eventually have to put my hands on something else in order to grow. This is a viable option that I hope to exercise one day.

Sometimes I think that my biggest problem with real estate is that there are too many options! But in the end, that's a good thing...

Jeff: Yes - I agree that I will need to hand over the reigns at some point. I've called around a bit, but I think that it's time to double down and really try to pick a company that can help my business to grow. I've done pretty well with small multifamily, so I would like to maintain that if the profit potential is still there. Definitely will take a pay cut if I have it managed, but the point is to scale up, so I have to think long term in this sense. 

Leslie: Interesting. I have not heard of these investment vehicles, but I will do some research. Eventually the day will come when I tire of being an owner. Actually, I was tired 5 years ago...I've just built up a tolerance.

Both: Thanks again for the input - I appreciate it.

I have been at this game for about 10 years now and own/manage about 20 rental units in my mid-major city.  They are 1-4 unit homes. Rental market is good and vacancy is not usually an issue.  They are cash flowing decently (about 100K/year pre-tax) and I have approximately 400K invested.  Some I own outright, others are mortgaged.  I do most of my own maintenance, but I do farm out HVAC on occasion or other major work that an individual cannot reasonably complete.  Most of my properties are in very good shape and there is minimal maintenance.  Of course, things break.  I'll be replacing a water heater this weekend. I repaired (I think...) a refrigerator last weekend.

I also have a W-2 job that pays me about 45K a year, but it has excellent benefits and I enjoy working for my boss as he is very lenient with my schedule.

So, here is my issue: My simplistic game plan of buy/fix/rent needs to evolve. I want to grow. However, I realize that I am rapidly approaching, if I haven't already passed, my upper limit for growth and efficiency. Plus, I have a family now and time with them is an ever more valuable commodity.  Thus, I would like to try a different approach where I am more hands off.  

I have considered apartments, but haven't seen any deals that really make me want to pull the trigger. Inventory for 1-4 unit homes is rapidly drying up, but there are still some deals to be had if you look in the right places. I've considered property management, but I haven't yet come across a company that impresses me - though to be fair I know that none of them will take care of the properties as well as I and I'm sure that this results in some bias. Also not crazy about some of the fees that I have seen...

I want the same thing that 99% of the people on BP want: Financial Freedom. That is to say, Financial Freedom where checks appear in my mailbox at monthly intervals and I am able to worry about the next deal instead of where I am going to get the replacement gasket for my 1985 Maytag refrigerator. I'm just about there, but for me the next step is critical and I could use some input.

Bascially, I am looking down two avenues right now:

1. Continue with the purchase of small multifamily properties and hope to find a management company that won't cause one of my properties to end up on the six o'clock news.

2. Create a larger search area for potential apartment deals. Yes, I know that there is stiff competition out there, but I am willing to try.

Am I missing something? 

And if it matters, I am 39 years old with both respectable liquid cash reserves as well as retirement accounts. Not really looking to do anything with the retirement accounts in terms of RE investing, but I'm also contributing to those as well. No debt except for the mortgages.

If anyone can offer any words of wisdom as to my next potential investment move, I would be greatly appreciative.

Thanks!