Cutting the cord: Ditching the Property Management Company

[Preston Gealy]

In the beginning... my childhood friend introduced me to Biggerpockets and the fire was lit inside me. I had huge aspirations to grow fast and big. I established an LLC and even started paying for a web address, but never made a web page. I dreamed of owning 100 unit apartment complexes and retiring early. Then I bought my first investment. It was a flip and it was a success. My thought was to take the winnings of my flips and buy rentals. I did that with a 4 plex. It was purchased fully rented and the plan was to use a Property Management Company to take care of it. I quickly learned of the limitations of property managers from their service area to limited resources to limited contractors to fix things. The last straw was when they renewed a lease without our knowledge and didn't raise rent. We let them go and tried on 3 more property managers for size. We found things we didn't like like how perfect they wanted units rehabbed in C class areas or charging us $70,000 to rehab a small apartment when we can do a whole house rehab for that much. One property manager even died while servicing our rentals! We are at wits end with property management companies and have decided to manage the rentals ourself. When we get big enough, we will hire our own property manager who will be on our payroll. Does anyone have tips, advice, podcasts that you can share to help us as we gear up for this next chapter in our investment life? We still have big aspirations and have learned the way to NOT get there.