Thoughts on My First Timer Plans?

[Samantha N.]

I am a VERY newbie looking to get into real estate investing. I will be coming from the standpoint of investing while working a full-time job, at least for the next 5-6 years. The good part of this is that it's a pretty good job, so it will allow me to have a fair income/cash flow to put towards investing.

Otherwise, I'm a quick learner and fairly good with finances but I'm not bringing anything to the table in terms of knowledge about construction/building/renting/etc. 

In a few months I will be moving. I am currently renting now, but will be in quite a good position to buy something when we move (likely somewhere in the Midwest). I'm thinking about purchasing something like a duplex/triplex. My question is that is possible to make any useful money if you contract the management out to a property management company, or would it be better to try and learn the basics of being a landlord. Honestly, in the long-term, I really wouldn't have much interest in being a landlord. However if it were to save me a huge percentage overall, I could learn over the next few years. The thing that scares me is that I would be living in the same building as the tenants which I'm sure could get awkward after a while. 

If anyone has any experience with learning like this, I'd love to hear from you!

[Jeff F.]

Hi @Samantha N.,

Typically, if you're planning on buying a duplex/triplex (and living on site) it makes no sense to hire a management company. If you're not planning on living on site, then it's probably worth it if you've got no interest in being a landlord. 

I currently am owner-occupying a 4 unit building that I purchased earlier this year. I have virtually no issues with my tenants. I set it up to collect rent payments online (via cozy.co) and do regular yardwork, where I occasionally see them. Other than that, we exchange pleasantries and I leave them be.