. . . most of the more knowledgeable folks on this website will probably tell you not to buy straight rental real estate until you’ve got some cash (Joe Kaiser says $25,000 in the checking account).
Even with a property manager running the show, there is always unforseen expense, vacancies, clean-up between tenants, etc.
It might be better to make some cash investing first, then look to add some longer term buy and hold places.
You can make a much better short term return on investment by doing other types of deals you’ll read about on this website.
I’m still pretty much a newbie, but that’s my take on it.
I am new in the investing world, and have yet to purchase my first investment property. What I’m looking at starting out on is possibly a duplex to rent out. My situation is that I do not want to deal with tenants. I want to hire a property management company to take care of this. I know that a lot of people suggest to start out managing your own properties until you grow bigger, but if I have to do that, then I’m not going to invest, that’s why I’m asking about management companies.
But with doing this when I own just one duplex, can I even make a profit? Maybe that’s a dumb question, but I don’t know how dealing with a management company works. What they charge, what they handle, what they don’t handle, etc.
What can I expect from going this route? Any information you can tell me would be greatly appreciated. Also, if there are any books or courses that anybody feels would be helpful for my situation, that would be great. Thanks!
Posted by Dick Schmidt on August 04, 1999 at 03:18:48:
Of course you can make a profit and use a property manager at the same time. I do it all the time on my out of state properties. It is just one more expence to figure in when you do the numbers prior to buying. Most of the time, the charge is 7 to 10% of the rent, but you can negotiate. Just be sure to allow for the manager’s fee before you make your offer and do it. Of course, someone not using a manager can outbid you, but then you just have to keep trying.