How far away can I be to still manage my property myself.

[Michael Gross]

Hello,

I'm currently in the market for my first investment property and was wondering how far can I live from my property and still manage it myself? 

I live in Brooklyn, but grew up in NJ. I'm looking a properties in a few different areas, but have narrowed in on areas like Cherry Hill, Haddon, Collingswood (South Jersey outside of PHL).

I would be looking for a place in good shape that should not require a lot of work. With that in mind i'm wondering if I NEED a property manager, or if I have systems in place can I manage myself. Really don't want to cut into my cash flow. 

Also is it generally a bad idea to buy my first property this far away (approx 2.5 hours by car). 

Thanks in advance for any advice you can all offer. 

[Zachary Ware]

Hey Michael,

I think it really depends on the resources you have where you buy the property. I self-manage a property that is in another state, 10+ hour drive. I am comfortable with this because I have a maintenance contact that I have worked with many times and trust them to look after the property when items come up.

[Mason Weiss]

There is no distance limit on how far you can be from your property and self manage. You will run into the same challenges being 45 minutes or 45 hours away from the property. So long as you are educated and prepared, don't shy away from self managing your first investment and learning the process of being a landlord.  

[Michael Gross]

Quote from @Mason Weiss:

There is no distance limit on how far you can be from your property and self manage. You will run into the same challenges being 45 minutes or 45 hours away from the property. So long as you are educated and prepared, don't shy away from self managing your first investment and learning the process of being a landlord.  

 Super helpful thanks

[Michael Gross]

Quote from @Zachary Ware:

Hey Michael,

I think it really depends on the resources you have where you buy the property. I self-manage a property that is in another state, 10+ hour drive. I am comfortable with this because I have a maintenance contact that I have worked with many times and trust them to look after the property when items come up.

Really appreciate the helpful response @Zachary Ware

[Bill B.]

I used a PM that screened, showed and placed the tenant (Renter’s warehouse) and since then have self managed 1st-miles away in MN. But, it’s 1/2 of a townhome, so outside isn’t an issue and it’s a “nicer” property @ $3,200/mo. So the savings from not paying 8% adds up fast. I’ve attracted long term tenants that treat the place like their home and I usually only hear from them every year or two. I don’t do it to save 8% of $1,500 locally where It pretty much pays for itself with short vacancies, long tenancies, and rent increases.

[Mohammed Rahman]

Hey @Michael Gross - anyone telling you that you NEED or DON'T NEED a property manager is not giving you the full picture. 

In reality, whether or not you need a PM depends entirely on how involved YOU want to be in the property itself. 

It also depends on the type of property you buy and the area you buy in. 

For example: 

1 - buy an A+ property, in an A+ area, with A+ tenants, that's 12 hours away

2- buy a C- property, in a D+ area, with C+ tenants, that's 30 min away. 

Which scenario do you think is going to need more hands on and active approach? That's why it's so relative. 

Shoot me a DM if you want to chat, I self manage my properties from 8+ hours away (driving) and haven't run into any major issues that I can't handle. 

It does help to establish a good network of handymen and contractors in the area that you're buying to make it easier. 

I just can't fathom paying a % of my income to a manager until I have 20+ units or so and at that point it would become a fulltime job likely. 

[Michael Gross]

Quote from @Bill B.:

I used a PM that screened, showed and placed the tenant (Renter’s warehouse) and since then have self managed 1st-miles away in MN. But, it’s 1/2 of a townhome, so outside isn’t an issue and it’s a “nicer” property @ $3,200/mo. So the savings from not paying 8% adds up fast. I’ve attracted long term tenants that treat the place like their home and I usually only hear from them every year or two. I don’t do it to save 8% of $1,500 locally where It pretty much pays for itself with short vacancies, long tenancies, and rent increases.

 Thanks very much Bill. Really helpful 

[Michael Gross]

Quote from @Mohammed Rahman:

Hey @Michael Gross - anyone telling you that you NEED or DON'T NEED a property manager is not giving you the full picture. 

In reality, whether or not you need a PM depends entirely on how involved YOU want to be in the property itself. 

It also depends on the type of property you buy and the area you buy in. 

For example: 

1 - buy an A+ property, in an A+ area, with A+ tenants, that's 12 hours away

2- buy a C- property, in a D+ area, with C+ tenants, that's 30 min away. 

Which scenario do you think is going to need more hands on and active approach? That's why it's so relative. 

Shoot me a DM if you want to chat, I self manage my properties from 8+ hours away (driving) and haven't run into any major issues that I can't handle. 

It does help to establish a good network of handymen and contractors in the area that you're buying to make it easier. 

I just can't fathom paying a % of my income to a manager until I have 20+ units or so and at that point it would become a fulltime job likely. 

 Thanks @Mohammed Rahman. I will definitely take you up on the opportunity to chat. All the best! 

[Michael Smythe]

As several have stated, it really depends on the Class of the property and the corresponding Class of tenant.

[Bob Stevens]

I know investors from around the world that invest in OH. I live in Fl and do all my business in OH. Distance is meaningless if you have team in place

Good luck 

[Michael Gross]

Thank you all for your responses. Very helpful! Wish you all nothing but the best in your investments! 

[Alan Asriants]

Being further away means that for small ticket items that you could have fixed yourself, now you need to have a handyman come in. 

Most people wouldnt find this to be an issue since they dont want to fix any tasks themselves anyways. 

It's 100% possible to manage the property from that far away. 

If the property is well maintained and has great tenants, your physical presence is rarely needed!

Set it up correctly and buy in the right area. Get the right people in there.

BTW i am an agent in NJ and PA and based in Phila. Feel free to reach out anytime. 

[Alex Deacon]

@Michael Gross we manage over 800 units and we have a lot of out of state owners. In most cases when they self managed we take over a real mess. They dont have the repair staff, a good local attorney, an ability to properly screen the tenants etc.. I could go on and on. I have seen very few do a good job on their own remotely. Finding a good team is difficult and even finding a good local property manager is no walk in the park. 

[Travis Biziorek]

Hey Michael,

I live in California and self-manage most of my doors in Detroit (12 of them). 

It's not that difficult if you have a strong team on the ground. 

That said, I'd questions why you want to self-manage. If it's to learn and be more hands on... I get that. 

But I think a lot of folks, especially in today's environment, are looking to self-manage because cash flow is so hard to come by and self-managing might help a deal make sense that otherwise wouldn't.

If that's the case I'd caution you on that approach. And hey, maybe check out Detroit... there's still great cash flow in that market even when accounting for our current rate environment, capex/repairs/vacancy AND property management fees.