Using a Property Manager - bad idea?

[Kyle Marek]

I'm young and trying to learn as much about real estate property rental investing as possible. Like a lot of first time investors, I'm looking to break in through multi-family properties. 

I reached out to my grandpa (50 years of RE experience and once owned 70 properties across the US) and sent him a deal analysis I calculated using the BP calculator. While members on BP said it was a good investment, my grandpa said it wan't because it was a couple hours away from where I live. 

He then went on to tell me how I don't want to use property managers because they can be lazy and gradually loosen their grip on tenants. But many podcasts and forums and webinar videos here mention using property managers. 

Is it not wise to use a property manager for my first investment purchase? Is it not wise to use them at all? Using property managers has been a part of my long term goal to own multiple investment properties across the states.

[Peter M.]

Sounds like you have a mentor there, willing to give you free advice and help you out, who you know won't try to screw you. I would listen more to what he says than what a bunch of people on the internet you don't even know say. He knows the area and even though RE has changed a lot since he started, hes probably forgotten more about it than you have learned so far. 

I personally think people should manage their own properties starting out so they understand the nuances and will know if they are getting a bad deal or bad service from a PM company if they decided to hire one later on. I would also start a little smaller before jumping into a multifamily several hours away. Your grandpa may even be able to fund a deal for you and walk you through the process.