A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

Additionally, have a clear budget, factoring in potential repair costs, and ensure you understand the rules about earnest money deposits and closing deadlines.LLC for Real Estate Investing: Forming an LLC for rental properties can offer liability protection and may provide tax advantages, though the tax benefits are non-existence for rentals.

This provides you protection and gives the lender a clear exit strategy,.

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

Every time I change cleaners, I spend at least 3-5 hours retraining on my processes and expectations and even then things are missed.

To continue with the 8-unit example, you again end up spending many multiples of these costs to build a comparable portfolio of single family properties.Another disadvantage of single family properties is that there is only one tenant per building and if they stop paying or if there is a vacancy, the entire cost of that property is on you and your wallet until you can fill that vacancy and get the rent coming in again.

I have a goal of being able to spend time with my daughter and family.

By not putting all your capital into one deal, you protect yourself from major losses and keep your portfolio more resilient.

If you have evidence of the damage, it is unlikely the tenant will spend the time and money to take you to court.