Is An Hour Away Too Far While Working 9-5?

Question

Is an hour away from home too far away to invest while holding a full time job?

I have been presented to opportunity to buy a couple duplexes an hour away but I am wondering if it would work without hiring a PM.  Anyone's opinions would be appreciated.

Karen O. · Answer

Since he lives there, and plans to stay, maybe he'd be open to playing the role of PM?  I say that tentatively because it would be unfortunate if you and he didn't see eye to eye, but if you're dealing with similar units, he's already there, and he'd get paid for his trouble helping to feather his retirement nest.  Might be worth asking.  Worse that happens is he says no.

Karen O. · Answer

Marvin, can we assume your friend, whom you first approached, isn't using a PM they'd recommend?  Or they live closer and/or are self managing?

Marvin Rice · Answer

I have enough flexibility to take calls and occasionally leave but I am sure if I do it too much, my employer would be somewhere south of pleased.

I don't have enough specifics yet about the area and tenant pool but I take from you statements that if the area is good with good tenants it shouldn't be so bad.  Less desirable area and I would have to be prepared to sacrifice time and sleep.  But I love sleep!

Marvin Rice · Answer

No connections.  This was referred to me by a coworker that owns a 6 unit there.  I had asked him if he was thinking about selling and he wasn't but he gave me the number of a relative that mentioned wanting to unload his 2 duplexes.  Doesn't like land lording.

I would have to find someone local I could call.  If I did buy these, I would start actively buying in the area with the long term plan of handing them over to a PM.  It would give me time to vet the local PM's.

DFTBA - You tryin to start the newest cultural trend here!?!

BTW....I NEVER forget to be AWESOME!

Colleen F. · Answer

It depends.   When can you take calls?  Can you respond to someone within a couple of hours by phone?   Are you able to take a day off now and then?    What are you going to run down there and do? are you going to do showings?  Are you going to fix things?  what are you going to fix?

We are an hour and a half. I have used a PM and I have not used a PM.  While there is a utility to using a PM it is most helpful in the showing phase and taking inconvenient phone calls. A PM is going to go over there to show to prospective tenants and maybe occasionally for an inspection,  they don't fix things. They will get a repair person out there.    So if it is a decent area with good tenants it is doable being an hour away if you have some flexibility and don't mind the work, it isn't  a completely passive activity.   You will need to do things when they are inconvenient, you will need to identify key trusted repair people and get them to respond to you,  you will lose some nights and weekends especially in the beginning.

The positive is if you know your properties you can learn to avoid calls. If you know your tenants you will learn which calls you get are important. In the end you can profit from the education as well monetarily. All that being said the main reason to use a property manager isn't distance--- it is because you can't/don't want to deal with tenants and that is fine too - just know yourself.

John Van Uytven · Answer

@Marvin Rice

Since you are asking I am assuming you don't have connections over in that area?

What about a handyman to take care of minor issues?Would you want to scale in that area to make it more worth your time?

Personally I currently live in the country and if I want to buy something with any bite to it. I will need to travel an hour or more away. I will need to scale in my next city.

I don't know the entire situation, but I say it is definitely worth a look.

Good luck and remember

*DFTBA*Don't Forget To Be Awesome

Marvin Rice · Answer

I usually make it a policy not to feed the trolls but here you go:

I'm not sure why you are under the impression that this is my first property.  I have never owned a rental property outside of Detroit and that is why I asked the question about distance.  I didn't fall into anything.  I was trying to see if my coworker was interested in selling his multi-unit and he offered up what some people would call a lead.

I have all that infrastructure in place where I live (but not in teal) and not there, but I know how to develop a team.

Perhaps you weren't trying to be condescending.  If not...my bad.  The only constructive thing you gave me was "An hr. is not uncommon or unrealistic".  I will take that and run with it...

Luka Milicevic · Answer

My only property is about an hour away. It wasn't fun having to drive there every Saturday and Sunday to do renovations (did everything myself).

I didn't have much of a choice since the marker where I live is way too hot and overpriced.

I had to invest an hour away more out of necessity.

John Van Uytven · Answer

@Marvin Rice

Not starting something new, only bringing it from the author John Green.

I think it is something people need to remember, we are trying to do awesome things. Things that most people only dream about

Karen O. · Answer

Wishing you good luck.

Is An Hour Away Too Far While Working 9-5?

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