All Forum Posts by: Ellie Miller

Is it reasonable to expect a 7% cash-on-cash return in these markets?  Looking at an investment of $1.2M so a smaller building.

I would suggest walk before you run and get your hands dirty a bit before moving into bigger things. I started out with renting a SFR, then moved on to duplexes, then 4-plexes. I learned a lot at each step which made me smarter making the next deal. I think it's invaluable manage your own on the first one and really learn how it works. I was a weekend warrior for a long time while keeping my day job, and it was the best training ever. Now I know when I should REALLY call a plumber instead of reacting to a hyper tenant's description! Buy local to start while you're learning in the school of hard knocks. Then you'll be equipped to own something 90 miles away and manage it well. BTW, having a property manager is a big help. But you have to manage them too. And doing it yourself to start teaches you how to evaluate property managers and then manage the one you pick.

Hope this helps.