Cash flow and PM ???

[Nadir M.]

Hello everyone,

Currently I have a PM managing a property that I own out of state. It’s been two months and I’ve yet to cash flow. With management fees, fee for finding a tenant, and the miscellaneous tenant calls, I’ve found that I’ve yet to see any money coming in.

Now some of the fixes are as follow:

Before property was rented out, there was snow removal that ran $140. After property rented out, Installation of a mailbox for $41. Service the garage door, program keyless entry and install 1 remote control, $141.80 (before buying the property I had someone service the garage door but not program keyless entry). Removing a fitting from the washer drain so the tenant could hook up their washer drain hose, $60. Fixing a gas leak on water heater $110. That’s not including management fees and the cost for finding me a tenant. I do like my PM company as they are professional and efficient and all these fixes sound necessary to me. When should I start expecting to cash flow? From everyone’s experience, when did you start to cash flow? I want to hold off managing my own as I told myself the first couple of months will end up costing me then I would eventually start to CF. Advice??

Thanks

[Bill B.]

You only had $300 in repairs, inspection woulda cost at least that. You’re not behind yet. Who would you have called to do those repairs without a PM? Pry just some random guy in the phone book/on the internet that coulda charged you any amount they wanted. 

So far I’d say you’re startup was an 8 out of 10 for lack of real problems.