Managing a property for the first time

[Caetano Vega]

Hi everyone,

This is my first post here, and I'm looking for some outside input. To start, I do not own a property... yet. I just graduated from college in June with a degree in mechanical engineering, but I've found that my true passion and interest is in real estate. Over the next year or so, I plan to learn as much as possible while also connecting with people in my area to gain a better understanding of the market and opportunities. My degree may not be my passion, but I know it will provide an income that I can leverage into something else (I've already started working).

Currently, I am living in a home owned by a relative, and my rent is impressively discounted. This comes with the expectation that I'll handle most of the minor things the property needs, but I don't have to pay for materials or tools to fix things. After a month or so of getting the house ready, I've fallen in love with improving the home and managing everything the property needs.

This leads to the main purpose of this post. This same relative owns another single-family home in West Linn, OR. It's a great little house with a nice yard, right next to the schools. My relative has inherited these properties and does not want to deal with being a landlord. As a result, they are renting this 3-bed, 2-bath house for $1000 a month to a group of guys who aren't on any type of rental agreement or lease. I know for a fact that this property can bring in over $2000 in rent, possibly even close to $3000. My relative is open to making more money, of course, but does not want to deal with getting people off the property and finding new, better tenants.

I would like people's input on whether it would be valuable for me to take over all the property management for this property. Not only to make my family member more money, but also to learn how to manage a property and, of course, make a little money on the side. Does anyone have suggestions on how to approach the current situation and what I need to be able to handle the job? I am very aware that managing a property is a lot of work and has its ups and downs, but I am ready to learn and have the energy.

[Michael K Gallagher]

I'm always a fan of starting by doing it yourself.  So from that aspect I'd say its a good learning experience, however, with regard to the specific situation of the current people living there thats a good discussion for a local realestate lawyer.  You'll want to understand what kind or notices and documents you need to get executed to either up their rent or turn the unit.

Solid long term tenants are worth their weight in gold in my book so if theres a way to up the rent and keep them happy I's say thats the best route personally.