Manage Tenants Or Contract Out
As my RE investments grow, is it better to contract out the management of my property or do it myself? I would assume at some point, I would hire someone on for this task. I want to stay on top of cash flow, but I don't want to get bogged down in landlording. Am I thinking on track here?
If all your investment properties are in your local area that's one thing. If you invest outside your local area I don't see how you could not hire property management companies.
Even if you never invest outside your local area, as you aquire more properties you "will" get bogged down in the management of these properties.
I guess the bottom line is do you want to spend your time managing properties or investing. Should you decide to have a property management company assist you, don't forget to include the expense in your number crunching. Good Luck.
Dave
[addsig]
I would say that when you run your numbers you should always include management fees. Without those numbers the returns look higher on a property or the CF might even be negative.
That way if you choose to pay yourself for management that is in addition to your positive cashflow.
I would not "hire" anyone to do property management. You have all sorts of employee issues when you do.
Instead, outsource the job to a professional property management company. A professional company has the resources, the contacts, and the experience to do the job. A professional property management company does not have to be trained as would your employee.