All Forum Posts by: John Liaaz

I notice that it's a mixed bag when it comes to management on here. Half prefer to manage all their properties themselves and the other half won't touch a property without a manager/management company. Why is this such a polarizing topic in real estate investing?

Coming from a small business world, I couldn't imagine owning my business and doing all the work AND being on call 24/7 for customers. I never had any issues hiring employees and managers. So when I started real estate, that's the first thing I did upon acquiring a new property, started looking for management companies. I was surprised when I came to online forums to find that so many people DESPISE property managers and do everything themselves. 

I have manager for my small business, I'm paying him $40k+ a year! I pay that because it makes my life easier, I don't want to deal with a bunch of min wage employees and customers asking for me. Same thing for tenants.

It seems to me that many real estate investors are opposed to management it unlike your average small business owner.

What would be the reason for that?

Looking at this 12 plex deal that has 1 unit being used for the superintendent. I've never seen a super for a size like this. Is it common? I'm thinking about getting rid of the super and renting that unit out to increase the NOI and letting a PM company manage it. Any reason why the previous owner had a super in there that I should be aware of?

I notice a lot of large apartment buildings in my area (Toronto) are being managed by third party property management companies. Why would a company that owns a building like this decide to outsource management instead of hiring in-house? 

When I ask people why they sold a good cashflowing property, I usually get a response that “there was too much headaches with it”.

What does that mean if the property is being managed by a PM? Are there things that the management company will reach out to the landlord to deal with?

Been researching real estate for a few months, still not understanding how investors make their money!

If the cashflow is around $100 a month for a house, I would need 30+ houses to have a livable wage from the cashflow. And that’s assuming I don’t refinance any properties to scale up.

So how do some investors on here make a bunch of money doing this to live off of and buy luxuries? The cashflow just seems so low, and this is if everything goes right, no major repairs, Vancencies. The amount of work and risk involved in owning 30 leveraged houses for $3000 a month makes me consider buying a business instead. I’m probably misunderstanding this, can someone explain?

Thanks!