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Updated almost 7 years ago on . Most recent reply

User Stats

350
Posts
221
Votes
James Orr
  • Real Estate Agent
  • Fort Collins, CO
221
Votes |
350
Posts

Impact of Property Management Fees on Your Rentals

James Orr
  • Real Estate Agent
  • Fort Collins, CO
Posted

The difference in your bank account balance between paying a property manager 11.67% (10% of gross rents plus 20% lease fee) and managing the property yourself when buying one 20% down rental property (in Northern Colorado) over 40 years is:

If you invest the difference in the stock market and could get 8%, the difference becomes:

If you're saving for a second purchase, it delays when you can buy that second property which further compounds the effect of property management fees on your overall net worth.

And doing the full Nomad investing model, it is pretty significant differences.

I am going to write a whole book about the impact on various investing scenarios.

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