When to get a property manager?

[Jim Zatko]

Hi everyone! I currently own 3 rentals in Toledo OH and I live in Michigan within 15 mins of my rentals. I'd also like to grow my portfolio without burning myself out. I'm just wondering when is a good point to get a property management company to manage my properties. Is there a cash flow formula? I have a family, and I love my full time job, so I don't necessarily like running around fixing toilets. :)

[Ryan Pyle]

Jim, in my opinion you can go a long way before needing a PM. The key is placing good tenants in your properties. For the most part, once a unit is filled there is little to do to manage the property. If you don't want to fix toilets (I certainly don't) then send a plumber to do it. That's what a PM would do, so either way you'll be paying for it. Plus you'll be paying a PM 10% (or whatever you negotiate) off the top. 

I used to say I'd hire a PM once I got to 20 units. Then it was 40. I'm now at 213 and still self-managing. I have a full-time maintenance man plus live-in maintenance guys at two of my larger apartment buildings. 

Again, they key is being patient and putting good tenants in your units. Good tenants need very little management and require very little interaction.