My comment above is from the perspective of if I'm buying the property, not assigning it.

Yeeaaahhh....)If you're hiring a legitimate business to help you run your legitimate business, don't be shocked when they charge you the overhead to make sure that the business is running correctly and legally.I think the question you need to ask yourself is this - is this PM handling your 1958, broken down and badly renovated house inhabited by the world's finest renters in a way that is keeping things smooth from your perspective?

That's a good perspective that I haven't thought about!

But from a cash flow perspective, its terrible.

To put it in another perspective.

There is no way I could have found this deal without the RE agent.On the other hand, most RE agents don't know what a deal looks like from an investor's perspective and many will inflate a home's value.

While I agree you can look at if from the perspective of could you buy less expensive better cash flowing properties that would produce better roi and you might be able to and for some that might be the best thing to do.

It is zoned for and actually could be converted easily into three or maybe even four separate apartments, but I'm not sure it would actually bring more from a lease perspective that way.

Jawestte, Thanks for the perspective.

Prices are inflated beyond what a discounted cash flow model would say the investment is worth.This is also a big part of the reason why multi family dwellings (MFDs...for the other poster that asked) are more desirable from my perspective.