All Forum Posts by: Douglass Belt

Is there a "general rule" for the number of units where it makes sense financially, to use a Property Manager (PM)? For instance, 5+ units use a PM? I am looking into making the move from a SFH to a Fourplex. I understand there are numerous variables to justify the cost, however, I wanted to get thoughts and experiences from those who use a PM and are in small residential investing (2-4 Units). Is it worth the expense? I enjoy real estate investing, however, my concern is that I am worried that increasing the number of units, will also increase my stress (of course that will be a given regardless) level should I manage it myself. Am I correct that about 10% gross rent is the typical fee for PM's? Do you set up weekly meetings with the PM to discuss any issues? If someone is willing to share with me their specific process, and examples of working with a PM that I can learn from, that would be great! Thanks for help!!

thanks everyone for the feedback and giving me some things to think about. Chris Adams, thanks for bringing up the yard work....good point I did not think about regarding having the tenants responsible vs. multi family and having to do the work myself or outsource. However, if I am making more in cash flow, perhaps that will allow me to hire someone to take care of that. Also, perhaps a tenant who would not mind being in charge of doing that for a discont in the rent might be an option.

When owning MF's, and the tenants dont get along, is that really your responsibility to referee? I am sure it does not make things pleasant but it seems to me it is their problem, unless things turn dangerous. Thoughts?

Again, thanks for the feedback and I apologize for the delay in responding. I have limited time to get on this site, with a full time job, wife and kids...which, is another full time job!! lol!

thanks everyone for sharing with me your insight and suggestions. Sorry it took so long to respond!! A full time job, wife and two kids will keep you busy! I try to get on the site a few times a week-thus the delay.Which actually brings up a question; How do you make time to invest in multi family units, and balance a home life and full time job? I really do not have any extra money now (it all goes to bills, etc.) to invest and feel like I am "running out of time" to invest. My wife says I should just wait until we are closer to retirement to invest, but I figure the sooner the better. It seems to me if I am in my 50-60's and just starting to invest, I will not be able to truly reap the rewards of the potential cash flow and equity from a buy &hold strategy for 2-4 unit buildings. Any thoughts?

Thank you Sharon for your ideas, and I agree, I need to revisit my lease and add some of those items mentioned, including having a sit down and reestablishing expectations. The basics are outlined including a crime free addendum, etc. however, I realize I need to add to it. Would you have a sample of a lease or where I can find some verbiage or sample leases to use?? thanks again for the feedback and I share your goals of using multi-family investments to fund my retirement and travel the world!

First off, If this question has been asked already, I apologize! I searched far and wide to find a post that matched my question but could not find one that addressed this, so I will throw it out there!

I currently have owned a SFH rental for the past 8 years. Man, had I been on this site before I decided to jump into this game, I would have done things waaaaaay differently! That said., I have learned a lot in 8 years, as well as from this BP site. My niche, as I have decided, is going to be in small residential multi family investments. (for now) Is there a large learning curve you would say moving to a duplex or even a fourplex?? I am aware of some of the common differences such as, 2-4 different families, and demands for each, dealing with tenant-to-tenant issues, etc. From my experience it is really the same as issues I would be dealing with for a SFH just multiply by 2 or 3 or 4 times. The upside, is more cash flow, 1 vacancy does not account for 100% of PITI, etc. Can I get some feedback from those who have made the "jump" to a duplex, or fourplex and how hard or easy was the switch. What advice, tips, tricks, and successes can you share? Thanks, and just cant say enough about how great a resource this site is!!

Thank you both for your insight and responses. I really do appreciate your thoughtful answers and ideas. You both bring up good points and gives me some things to consider. I like your ideas Gerald, and I do have some time to see how things go and consider having a discussion around setting expectations for the next lease term. It is difficult since she has some strong qualities, i.e. able to fix things without calling me, pays rent on time, friendly with neighbors and generally has improved the property, landscaping, etc. However, she also has times where she tends to freak out and I am unable to rationalize with her as she gets so wound up. At any rate, you both bring up good points, which again, I truly appreciate you taking the time to write thoughtful answers!!

I have a SFH (in another state from which I live) which has been rented to the same tenant for two years. Single mother, 1 child. the lease comes due this summer, and wondering if I should renew her or look for someone else. Never had an issue with renting-near many colleges, and businesses. She has done a good job taking care of the house, has fixed things on her own, landscaped, painted, installed new ceiling fans, etc. and not a tenant who will call me "for a plugged toilet" as she can fix that on her own. She is pretty handy with many things. She is on time with rent and for the most part pretty quiet. the down side is I think she has some emotional and/or psychological problems, as once and a while she will flip out. For instance, when she found a drip in the basement (caused by condensation on a pipe during the summer), called me telling me there are pools of water, called the fire inspector, and housing department, etc. as you can imagine it is quite a ordeal. That was just one of a few incidents. As I am not able to just drive over, (250 miles away) it is not easy to just fix it or know what is really the truth. These "flip out" sessions happen once and a while and causes major headaches. It is hard to deal with her, as you never know who you will be dealing with on the phone...the "nice" tenant or the "I-am-going-into-panic-mode" tenant.

What are your opinions on having her stay. On one hand, it would be nice to have her there, no move out, cleanup, showings for prospective renters, etc. and on the other, it may be nice to get someone else in there that is more "stable" mentally.....any thoughts, suggestions?

Hi Dawn,

think when I set up the account I just used "D" and "B" for the first and last name....but cannot change now it looks like....maybe I need to delete the account and start over?

Sorry for the severe delay- and THANK YOU for your response. I agree and am worring in how to change my initials to my actual name. Apparently, not as easy as I thought!

Good idea regarding on finding a mentor. In addition to BP, I think helping out a investor and learning in a "hands on" way will be a defacto way of being a mentee.

In your experience, can you tell me what you see are the 5 best and 5 worst things about owning a Duplex vs 4 plexes, Apartment buildings (5+ units), or commercial building s (retail/office/warehouse)? Thanks again Darren and appreciate your feedback!

I have been "sufing" the posts of BP for a few months now, so I guess I don't consider myself a newbie, however, I still want to introduce myself. I hail from Madison, WI and looking to gain knowledge (like everyone) on investing in multi-family as well as NNN lease commercial. Also, when I set up this account, I just used two letters as I am leary about signing up for websites. now that I want to be more active with BP, does anyone know how to edit the name to reflect my actual name? I tried "edit profile" but did not allow me to change it. Thanks for all your help and I look forward to being a part of BP!