1st property, Should I hire Management Company or self manage?

[Brandon Shiverdecker]

Hello Everyone,

I'm looking to purchase my first deal (2-4 unit multifamily) by the end of this year. My question is, Do I self manage or do I hire a property manager? I plan on living in one of the units to start out, but I don't really know the "legality" of everything and definitely want to  do things the "correct" way. Being in-experienced tells me to hire the property manager, but the size of the property tells me I could use this as a huge learning tool. Opinions?

[Thomas S.]

Step one, before you even consider buying is to learn the legalities of the business. It is your responsibility as a landlord to know all your state landlord tennat laws whether you manage yourself or hire a PM. Never invest in any business without first studying and learning all the laws. You must learn the laws that govern your business now. Investing and then coming on here asking for help without having first studied the law is not the proper way to operate a business.

I strongly advise all new investors to self manage if they buy local. You can move up to a PM when your business grows but if you do not begin with self managing you will never be able to properly manage a PM. They do need to be managed, you know that right.