Landlord or Property Manager

[Alex Shipp]

I am new to Real Estate Investing and BP and was thinking about getting into buying SF rental properties. It seems like most people on BP uses a property manager, but I was wondering if any of you manage your properties yourself?

I'm just starting out, so I would only have one property to manage and thinking I could save on the management fee which is 8-10% plus half to one month's rent.

My main concern would be actually renting the house out. The only way I know how to advertise is on Craigslist. Does this work for you that manage your own properties? Do you use an agent to help you out?

[Ethan Simcox]

Originally posted by @Alex Shipp:

I am new to Real Estate Investing and BP and was thinking about getting into buying SF rental properties. It seems like most people on BP uses a property manager, but I was wondering if any of you manage your properties yourself?

I'm just starting out, so I would only have one property to manage and thinking I could save on the management fee which is 8-10% plus half to one month's rent.

My main concern would be actually renting the house out. The only way I know how to advertise is on Craigslist. Does this work for you that manage your own properties? Do you use an agent to help you out?

 Alex,

I am in the same boat as you, considering rental properties in Indiana and have been wondering the same thing.  But after reading some other posts on this forum and from listening to some podcasts, I would recommend that whether you chose to go with a property manager or not, you should figure in PM costs into your business plan regardless.  Because some day, you will want to hire one if you accumulate enough properties.  It's better to have that cost built into your budget before you acquire too many units and don't have the funds to hire one.

It certainly can work out if you manage your own property.  But if you don't contract out your maintenance, you will have to learn that stuff - like how to fix or replace an air conditioner, ceiling fan, etc.  

So I highly recommend you figure in the costs of maintenance and property management.  Even if you do these things yourself, there will be opportunity costs which is your time.  Time equals money in the end.