Start Management Company or Just Focus on Investment Growth?

[Richard Henry]

My partner and I own and manage 170 units. 70 apartments and 100 houses. We have always self managed due to the lack of quality management in our market. We have an office with additional warehouse space, a secretary, and 3 full time maintenance staff currently.

We are currently buying 1-2 rentals a month and flipping 10-12 houses a year. We do a very good job with leasing, management, and collections. I feel that I could grow a 3rd party management company fairly rapidly if I decided to. I get asked all the time to manage other people's units but have always turned them down.

My question is whether we should take the opportunity to build and grow a large management company for extra cash flow or if we should just focus on the investment side.  I am starting to loose interest in the flips, but I am not sure that I want to deal with answering to other property owners.

I would love to hear from other landlords and managers on what they have decided in my situation.  Any feed back is appreciated.