Work/Life Balance & Staying Sane - Your Tips?

[J. Martin]

I own and manage 6 units with $100K in gross rents, all cash-flowing in the Bay Area, while working an "officially" full-time job. Bought the last directly through listing agent, and in contract on 2 duplexes right now, directly through listing agent.

Balance
I typically work 4 days a week at my full-time job, about 5-10hrs/month on real estate, take off 5-6 weeks per year for Thanksgiving, Xmas, New Years, July 4th, and a couple other weeks, in addition to a month and a half straight for Amsterdam, Paris, London, Munich (Oktoberfest!), Florence, Barcelona, Mallorca.., and planning 3 months straight to Asia in next 18 months.

I've also been to New Orleans for Mardi Gras, Portland, Seattle, Chicago, Kansas City, Philadelphia, DC, Malibu, and San Diego over the last 2 years. I fund this partially by taking a partial paycut to "buy" vacation, and partially by taking a lower-paying job that gives me a lot of flexibility (and of course, some rental income ;). (and some free credit card points) - All while working full time, prospecting for, buying, rehabbing, and managing these 6 units at $100K gross rents, w/ 4 more in the pipeline. And I'm not even that organized, so imagine what you could do!

Tips
1) As many noted, put a value on your time. I will rarely do anything I can pay someone else $20-30/hr to do just as well.
2) Have a key person(s) to handle your recurring business for you. (My handyman lives in one of my units, for a partial discount on rent - with his friends). While I am in Europe for over a month, or on vacation elsewhere.. This may be a team of people for you, or..?
3) Have all your key documents, blank, and signed, on a dropbox online. This will do wonders for you when you have some turnover.
4) Have all pics, listings, etc. for each unit and property saved and ready to go.
5) Have checklists/systems and all forms ready for getting things into action mode. (Notifying tenants of cleaning responsibilities, showing unit, new listings, voicemail for listing, ) - or call PM.
6) My tenants are my "partners." I communicate with and treat them respectfully and reasonably. I minimize my vacancy and losses by finding win-win situations that work for all of us. Doesn't mean let them walk all over you.. 4 of my 6 leases won't be up until next year, so it's on cruise control.

Your balance with real estate, work, and life? Tips for making it happen and improving it?

[Andrew Fingado]

Thought i'd give my input about how I stay sane at my job since @J. Martin and so many others have given their input.

When you are a property manager you are never officially "off work". There is always the possibility of a call, even at 4AM. Luckily I have been able to outsource repair issues to a family member who is a contractor who takes care of emergency repairs. Even so, there have been trips at 2AM to a property for an issue which required my presence. That being said, I have created a life in which I can be a successful property manager and at the same time have enough free time to relax to do my job at the best of my ability.

My advice for anyone out there, just like J Martin said: outsource as many jobs as you can afford and are comfortable with. Solid advice. Also, don't take on more work than you feel you can handle. Let me explain.

I keep a smaller management portfolio than other companies because I refuse to let my work suffer to gain more income. I am the only real estate broker in the company I created and I plan to keep it that way. I serve as leasing agent, manager, but I outsource bookkeeping and repairs. I am somewhat selective about what jobs I take. If it's too far, too bad an area, not enough money for the work put in, I have no problem passing on it. I want to do the best job for my client and if I feel like there's a property that will somehow effect my work or myself negatively I cannot ethically take that job.

I have seen other property management businesses crumble because they grew too quickly and didn't want to hire out more help. Their reputation suffered as the owners became grouchy, overworked, and uninterested. This gives the property management industry the reputation it has now. What is good about having more money when you go to work unhappy and overwhelmed and come home exhausted?

I want to keep my business small, local, and reputable. This means at a certain point I may have to cap it and not take any more clients. If it means I take a hit on my income, I could care less. I don't need the stress and I refuse to let my work suffer. I plan on investing to supplement my income.

Moral of the story, your emotional health and happiness are much more important than money. I would rather make 100K per year, keep a mid size management portfolio and be able to have free time to relax, be proud of my work, etc. than make 300K a year with headaches every day, unhappy owners and tenants, all the while no time to enjoy life.

So my advice to everyone: Don't take on more and allow your work to suffer, and don't take on more than you can emotionally handle. If that means a pay cut so be it. What's the use of making double what you make when you are unhappy and will probably croak at 50 from a heart attack? Life's too short. Make money but know when to say "enough's enough".