Core 4 - property manager

[Freddy Hernandez]

Hi all! I'm reading the BRRRR book and a big concept is the core 4 (realtor, lender, contractor, and property manager). As someone who is just starting into real estate investing and would like to start off by being the landlord and taking care of the tenants myself, does having a property manager in your core 4 make sense when starting? I understand the benefit of having one (getting opinions on rent, which areas to avoid, etc) but I dont understand how I can help a property manager here. I'm (at the moment at least) not giving them business since I am running it and would be a one way relationship (I would be the only one benefitting). Is there something I'm missing or does it make sense to not get a property manager involved at first? Is there a way I can ask for help from a property manager so I can receive help without wasting their time since they are not being paid by me.

[Jacob Valle]

@Freddy Hernandez I think you raise a good question.  If you are planning to self-manage your rentals, then you really are replacing the property manager from your core 4.  In that case, I agree with you that it seems unlikely that a property manager would give you much help or guidance if they know there is no pathway for compensation for them.  However, I would not discard the property manager completely and just assume to self-manage.  I do think it would be worth your time to sit down with a property manager for an initial "discover" conversation to explore more specifically what they could do for you.  Just having an initial conversation now, even if you don't use them now, will set you up for success later.  This initial conversation will not only build your network of connections, but let you know more specifically what to expect from a property manager relationship should you choose to use them at a later date. 

While it can be advantageous to self-manager at times, I have also seen it be the more expensive option for landlords.  A good property manager will know the market rates, be well-versed in screening tenants, and know how to work efficiently with repairmen.  I've seen investors try to self-manager, and in doing naively make a big mistake screening tenants.  Turned out that the tenants stopped paying rent immediately and it ended up costing the landlord thousands of dollars in loss rent and eviction costs.  The moral of the story, don't discount the value a good property manager can bring, even if it does cost you some money.