All Forum Posts by: Kyle Curtin

I'd much rather pay someone 15/hr to take carenof stuff to free me up to find my next deal or do anything else but work on one of my rental houses.

I keep a spreadsheet of what needs to be done and just text my handyman what needs to be done. I think I paid my handyman around 35k last year. He allows me to make more money by doing the stuff I don't want to do.

When you have more time than money, you should do most/everything yourself. That allows you to recover capital that you can then redeploy to make more capital.

Once you have enough money, you should start offloading tasks you used to do yourself starting with low-dollar value tasks. So for example, I don't cut grass any more at any rental, ever. I generally don't put in flooring any more as I can get it done for $1-2/sf as floating floors have really knocked down the labor costs of flooring. I don't do my own countertops any more as I have a guy that's far better at it than me, far faster and not much difference in price as if I did it myself.

I will still do high-dollar value jobs as necessary and I'll still do dirt jobs if it has to be done and no one is available to do it. I never think "I'm a $1,000 an hour guy so I can't be taking trash to the dump". Rather, I think "OK, this stuff needs to go to the dump and no one is available right now, so it can either sit here and make the property sit longer or I can take it". On my STR out of state, I do some work myself if I'm there and other work the PM will arrange if I'm not - I can't fix an HVAC unit from 600 miles away.

In all things, you should outsource that which you can afford to outsource if you hate doing it. There's a lot of things I like doing on houses so I would do them anyway regardless of cost. 

Next year I plan on opening my own brokerage and starting my own PM company, since all of ours in town suck, and at that point I will train someone to take over management of all my properties and start taking on other owner's properties. PM is something that you need to do at volume to make any sense. All of my properties are within 15 minutes of my house so self-management is a piece of cake, but starting next year I also plan on taking some time to stay at my STR out of state in the winter and someone will need to be on the ground locally.

Last note: don't buy all the hype and BS of "I should be working on my business, not in my business". Listen to or read "The E-Myth". That's the way it should be done. You do everything until you make enough money or business that you can fire yourself from the lowest paid, lowest value jobs first until you get to a point where you can virtually fire yourself completely. BUT it takes a lot of effort, time and money to get your business to that point. 

@Kyle Curtin I think this analysis is good, but ultimately, as @Nathan Gesner alluded to, this determination will come down to how you value your time. 

In the beginning, money will be tight - you won't technically be "worth" as much.  Do more yourself. 

As you become more successful and objectively "worth more", your time is better spent on higher ROI endeavors or simply enjoying the free time you've earned.

I know there are people who are objectively very wealthy, and still for them penny-pinching is a way of life.  It's an ideology at that point for some people. 

I'm definitely in Nathan's camp (other than owning fewer rentals than him! :) ).  Life is short, if you've built something you can use to enjoy life, use it to enjoy life.  Delegate everything that can be delegated (which is not to say you should not hold others accountable for what they've been delegated.)  My PMC also manages my rentals, I pay them, and I get no special treatment.  I'm just another client in the system.  

@Kyle Curtin I like to look at things through the value of time. If my time I valued at 50 an hour tasks more expensive than that I will ty and do only if I have the skill set. If its less see ya later! I also think there is a problem with scaling a business if you cant delegate out those tasks.

I'm not your average Joe, so take this with a grain of salt.

I'm busy as a Property Manager. I make good money, I work hard, then I want to go home and enjoy my personal time on nights and weekends. 

I have 33 rentals and I let my company employees manage them just like any other investor we work for. They notify me of maintenance, they talk to me when a tenant is coming due for renewal or has a problem, they send my payments, they publish my monthly owner statement, etc. My company charges me a management fee. I don't want to bother with it, and it gives me the opportunity to see how my operation is running from an investor's perspective.

I also have a vacation rental. It's 30 minutes away and technology allows me to manage it on my own easily, but I don't want to be bothered. I gave it to a local company that manages about 90 vacation homes and I pay their fee so I don't have to be bothered. That investment makes me 2x what I would make with it as a long-term investment, even after paying fees, so I don't care if I pay 20%. My sanity is more important.

It looks like you're off to a great start by evaluating pros/cons. My recommendation is that you try to handle everything yourself, but continue to evaluate and determine what fits your goals. If you self manage, it can put more money in your pocket to invest and grow. If someone else manages, it may free up more time so you can focus on things that bring growth. The right answer is the one that works best for you.

My husband is convinced we have to be making $200k + a year before we can start investing. I KNOW that isn't the case. I have met a few that started with very little and built their empire over time. 

When you first started investing, how much did you have in your pocket? How much in the bank? Would love to hear from you!

@Kyle Curtin
Have you considered adding a mini-split to the finished attic? 

@Kyle Curtin calling it "bonus room" or "office space" is perfect. You don't want to advertise as a bedroom at this time. Most people will see the pictures online and decide if they want to use it as a bedroom or not. Usually the space is perfect for children.