House hacking/ property managment questions

[John Do]

Hello everybody. I am new to real estate investing however this is something I have been wanting to get into for quite some time. 

I am currently saving up money to buy a 4 unit property and will be using the house hacking method to get started. The goal is to save up 50k by next year before I buy this property. I will be using the VA loan which will allow me to purchase this property with no money down.

Since I don't have any experience managing properties, I am planning to hire a professional property management company. 

So with that said, I have a few questions for some of the experienced investors/ landlords on here.

1. Could I get away with living in the 4 unit without the tenants knowing that I am the landlord? I work a full time job and I do not want to be bother constantly during my time off. Just wondering if anyone on here has any experience with this situation.

2. For those who use a property manager, does the rent money go to the property management company or does it go directly to a seperate account?

3. How should I go about coming up with the leasing contract. Should I go to a lawyer for that? I know that the leasing contract is a huge deal. If I could get any samples from some of the experienced landlords on here, It would be much appreciated.

Thanks in advance. 

[Luciano A.]

@John Do

I personal have experience with this and so this is how I would advise you.

While you are saving up to buy this 4plex you should take time to read all you can about managing property and start seeking out contractors that work with investors so you can have their info in your phone when you finally need their services.

You can setup an LLC in your state under a property company name you want. For example call it Smart Property Management Group LLC.

• Get a bank account under that LLC name
• Get a UPS/FedEx type of mailbox...not a Post Office PO Box. 
• Get Google phone number or use Magic Jack, Grasshopper to create a business line. 
• Business card with your company name, address to Mailbox but you will put 123 Main St Suit 456 so it sounds more like an office than a mailbox.

Once you purchase and move in you can send letter or post to each persons door introducing yourself as the on site property manager for Smart Property Management Group LLC. Advise them when rent is due. And I would advise them to deposit rent directly into your LLC's bank account on day rent is do or they drop check at your door listing check as your business name not in your name.

You can get lease agreement from this site directly for like $99. 

Dont hire property management company. Waste of time given you will live there and will know when issues arise. So regardless you will get phone to notify you or get your approval. 

At first will be weird because there will be existing tenants there but once you have new batch come through while you are living there it will be easy to pass off as the manager. 

I now own over 50 units and they still dont know I own the properties they just think I am the property manager.

Hope this helped