Self-manage +10 rentals in another state?

[Patrick Britton]

In the past three years I have spent over $40,000 in property management fees. While there has been some value in their management, I'm wondering if perhaps the value does not exceed the expense. Of course, this doesn't account for the markups made for repairs, maintenance, inspections, etc., so the actual expenditure is probably > $50,000.

Anyone self-managing a lot of properties out of state successfully here?

While it might be difficult at first, I'm wondering if it would be worthwhile in the long run to self-manage, or at least use an independent third-party contractor for various things.

[Will Fraser]

Hey @Patrick Britton, it certainly IS a large expense when you look at it at scale!  

The answer, though, lies with you . . . What are your goals in real Esstate?  How involved do you want to be?  How much further do you intend to scale?  

For my money, if I was looking to double or triple my holdings in that market AND wanted to be much more actively involved in the properties then it could be a lucrative move to spend the time and effort networking the market and setting up your own PM systems.

If that doesn’t describe what you’re after, though, then you could look at the annual breakdown and see this:  $50k/3 years = $16,667 per year.  This is NOT enough to hire someone full time (or perhaps even 1/2 time).   Additionally, that $16,667 you pay every year gives you access to their ever-growing networks and service providers, and hopefully some deal-finding network effects.

A strong case could be made either way, which is why it really always comes down to you personally vision, values, and principles :)