How big is too big for your first Rental purchase?

[Ed Brady]

Hi all, I am brand new to REI and looking for my first rental property and could use some advice from those of you who have a lot of experience under your belt. I have found an older 6-plex, in decent shape, that shows good numbers with my analysis. It has good cash flow if I don't use a property manger, small, but still positive cash flow if I do. The previous owner was a businessman and self managed the property and was careful about tenant screening. The realtor indicated he was selling to pursue other interests.

I have a full time job and just enough saved to make the down payment on the property.  I have no experience in rental properties, other than what I have read and listened to here and in books.  Ideally, I would like to go without a property manager due to the increased cash flow.

Am I potentially biting off more than I can chew by acquiring a property with this many units as the first acquisition?  Should I just start with a Property Manger, even though it will affect my cash flow?  Is it better to start small or start "big"?

Any insight appreciated. 

[Brian Nangle]

If the property did not meet my criteria for cash flow after expenses per door with management in place then i would not do it.  So when you say small but still positive cash flow with a manager where are your expenses at, what happens if you under estimated them and you have to move away for work.  Now you have a property that is breaking even because you may have underestimated expenses and are forces to use a manager.  I don't know your numbers so take this opinion for what it's worth.