How to- Hands off Investing

[Sean Forner]

Hello all,

I wanted to see what you all think about this situation I find myself in. I want to be a hands off investor and I have two ways to accomplish this. I have a relationship when I can rent out my properties for about $1200-$1300/month and net between $850-$1050/month. This group sublets my property and takes all responsibility for any damages and repairs as well as does bi-weekly cleaning and will restore the property to original condition at the end of the lease, which is for 5 years. Now I can continue with them for every deal or I can rent out the properties for $1800-$2000, hire a property manager at 10% gross, but the term will be for 1 year and the properties could get trashed. I would bet in the above situation ~$1250-$1300/month. Which option would you go with. The one is obviously much safer and is guaranteed income. I've already done it in the past and is absolutely passive with no worries. The other will net me more each month ~$400, but my property will get trashed and I'll have to replace carpet and paint of course. The one deal even includes carpet replacement and painting. What would you do?