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This sounds interesting, but does managing and keeping up 26 rental units really count as "passive income"? It sounds kind of like a nightmare to me, unless you
by lutorm 10y ago
This sounds interesting, but does managing and keeping up 26 rental units really count as "passive income"? It sounds kind of like a nightmare to me, unless you've completely outsourced that part to a property maintenance company. I guess the question is: how much time, or alternatively, what fraction of the income, goes to running it?
- jsonmez 10y agoCompletely outsource. I answer maybe 2-3 emails a month and say "approve." I kid you not.
- pimlottc 10y agoSo it sounds like you pay someone to manage your properties? How were you able to find a good trustworthy people? What does it do to your profits? Also, how do you deal with major expenses, like if a furnace needs to be replaced, or roof damage? Do you maintain a rainy day fund for this? What kind of average expenses do you see for your properties over time?
- jsonmez 10y agoYes. Vetting a good property management company is difficult. I've fired more than a few. But, now I have good managers in place. Typically, you can expect 10% of rents for management fee--well worth paying. You should factor this in when considering a property. For major expenses, I have some reserves and I figure a 10-20% buffer again off of the rent of the property. This covers the average expenses over time.