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Updated over 3 years ago,
Using a Property Management Starting Out: Does it make sense?
Does it make sense using a property manager when you're just starting out with a first investment property (a single Duplex/Triplex/Quadplex)?
I currently am thinking about investing in my first real estate venture out of state from where I currently reside with a partner. The partner would be near the area where we would be investing, but would would prefer we get a third, small local partner for the purpose of managing tenants, move ins/out cleaning, small fixes, etc. He thinks it would make more financial sense to do this versus having a property manager.
I'd like to get opinions on this - in my perspective, this is starting out, more of a learner property, and realistic about the cashflow we would receive on small property like this. In my mind, I am using this to educate myself for future properties. I also have more capital to invest than my potential partner, and would be more comfortable investing in a larger property (and thereby more sense to use a property manager, but that's a different story).
In my opinion, not using a property management leads to challenges finding a third partner that's trustworthy and fine taking a smaller stake in partnership.
Thanks!