Property Management for Cheap (Cash Flow) Properties

[Blake Jones]

Greetings BP Community! I've been flipping part time for a few years and have done pretty well. I want to start getting more "passive" income (I realize it's not 100% passive) and buying cheap/high cash flow rentals. This year I inherited two run down junky rentals that my mom had when she passed. Those two rentals (that are worth less than 50k together in their current condition) yield me $1,050 per month (both tenants have been there 8 years). I would like to collect more of these types of rentals but I want them managed to keep the headache off of me. These two rental properties are in a very rural area and I've only found one property manager so far (word of mouth) who lives in the  neighboring county (no managers in the county of the properties, it is Lafayette County, FL - the 2nd most rural county in FL). I live about 5 hours away. So my question for you more experienced investors is: Is it hard to get property managers for cheap, high cash flow rental properties? I would like to flip more  and use those profits to buy cheap, high clash flow rentals. But I'm worried about getting stuck with problems and can't find good management. What do y'all think? Thanks!! 

[Kris L.]

@Blake Jones

These properties area going to be challenging. First, there will be very few PMs in rural areas, because PMs need to have some scale to do that full time. Second, PMs generally regard low rent houses as a pain, because as a general rule have more maintenance issues which is more work for the PM, and because most PMs charge a % of the rent, they are doing more work for less $.