Myth: you can control your real estate

[Ozzy Ordonez]

Yes you own your property and you are in the title, but let's examine , if you really can control the ROI.

1- Can you control turnover?- very expensive by the way......my answer ..no

2- Can you control the outcome and budget of a renovation, .....my answer no..even if you have a good contractor, there is always unexpected expenses

3- Can you control your property manager and handling tenant? ...my answer no.......unless your breathing down their shoulders. You are totally dependent of their tenant selection and dealings with difficult tenants

[Joe Villeneuve]

Not sure at all what your overall point is for this topic. My guess, based on how new you are to BP, that you lost control over those three items you mentioned and became bitter about REI. Just because you lost control, doesn't mean you can't have control.

Controlling situations and eliminating problems are not the same thing.  I can control everything you said you couldn't by being proactive in my decision making:

1) Sure you can control turnover.  You choose the right market, the right PM (they fill the property), the right house, do the right rehab, and the PM defines the terms for vacancy (tenant profiles), and you are in "control".  Does that mean you have eliminated vacancies?  Of course not, but you didn't say that...you said control, which you can do.

2) If something is unexpected, it means you didn't expect it to happen.  So, in order to control this, you need to be proactive in reducing the number of potential problems that would surprise you.  If you see the roof is potentially going to be a problem within 6 - 8 years, you should not be surprised when it leaks in year 5, should you.  Address it NOW, when your cost is spread out at around $5 - 8 per month (from your initial financing), instead of as a lump sum down the road.

3)  You don't "control" your PM, you wisely "choose" your  PM.  I have a PM in place that allows me to have all my properties on auto-pilot.  They take care of everything.  I have online access to everything going on, and I get my rents auto-deposited in my account every month.

The underline answer is if you want to have control, you have to take control.  If you loose "control", that's on you.  Your lack of control is not because it can't be controlled, it's because you didn't take control from the start.