How Often Do Things Really Go Wrong?

[Derek Luttrell]

Hi Everyone, 

Pardon what could be a wildly ignorant question, but I drove from Chicago to suburban Indiana last weekend to look at some duplexes, and I am doing the same this weekend--needless to say, I am incredibly eager and excited to close on my first investment property before turning 26 in six months (I'm currently house-hacking my primary residence in Chicago, if that counts).

Especially for out of state investors who don't have a big portfolio yet, is there ever buyer's remorse about having a property management company? Are there months that go by where there are zero maintenance call/issues/expenses, and you're just paying to have the PM company on retainer? Do people have luck with having a relationship with a local handyman who can just invoice you hourly/per job, or do unexpected maintenance calls really happen that frequently? 

In my limited experience of being a renter, the only time I ever texted my landlord was during Chicago's 2014 polar vortex and my heating needed a swift kick in the pants. Other than that...it was pretty easy being a quiet tenant. 

Thanks for reading, 

- Derek 

[Tracy Streich]

Complete disclosure. I am a property manager so I am biased. I managed my own properties before I had a PM company. If you have a full time job there is a certain number of rentals you can manage in your own in your area. I found the number for me was about 10. At that point I was getting calls driving to collect rent, showing and various other things that were taking me away from my job that allowed me to buy those homes. It was several years later that I got into the PM business. Out of town is a different animal. You need boots on the ground. Minor maintenance could be major if it is fixed incorrectly or if the "great handyman" lies about what needs fixed and just overcharges you. A good PM takes care of that for you. They work for you not the tenant. I think you should find the PM before you find the property. Check with the National Association of property managers. NARPM. Once you find a good PM they should be able to help you find a home or duplex. They know the rents and the neighborhoods. Use their knowledge to help you find a great property. They can work with you or your realtor if you have one. Most realtors will say it will rent easy because they need the sale and commission. If you are using the PM they know the rental
Market and typically don't want to sell you something they will have trouble renting. Good luck !