How Many Properties Do You Own?
Maybe this has been asked as a poll question before, but I couldn't find it. I am wondering on average how many properties you all are holding for yourselves? How many do you manage yourselves or do you have a property management company managing them?
Just trying to get a guage for how many properties I can handle
Joe
[addsig]
I use a 60 - 40 plan. I hold 40% of all properties and sell 60% of all properties that I buy, lease op, sub2, trust, owner finance and so on.
Let me give you an example when I was just starting out a lot of years ago I did 3 deals my first year out so I kept 1 and sold 2.
I could not even tell you who told me this but that’s been over 20 years ago and the numbers of buy and sell have changed but I still use this plan and you would be amazed at how you net worth grows.
This has worked great for me!
I never give out the exact numbers as most are held in Corps, LLc's, trust and so on.
The only time that I use management companies for are large unit apartments, commercial offices, strip malls and trailer parks.
In most of my areas I will buy a low in property and give rent credit or free rent for them to manage any SFR's, duplexes or 4 plexus within a 50 mile radios of my renters location and this has worked out vary well for me. Also most that I do this with own a truck and are vary handy.
You can manage as many properties as you want as long as you manage your time effectively and manage your people well or it can turn into a nightmare.
Most of my homes go on a lease purchase program with the lessee responsible for all repairs with my consent.
[addsig]
Your question is a good one. The numbers that I hear are about 5 properties are the maximum you can manage yourself if you have a full time job. I have gone over that and they are multiple units which are more management intensive than SFRs.
I have properties in more than one state and the out of state properties are managed by management companies. Clearly, leveraging management is essential with a large portfolio.
My suggestion to you if you are starting out is to begin by managing your places yourself so you will be able to do a better job of managing your management companies as you get more properties.
Regards,
Ed