Looking to get first rental property- have some questions

Category: Strategy

5 replies

Original post

Hey all! Excited to be here. Im James, and im looking at getting my first rental property. I've been trying to analyze some multifamily properties in the 2-4 unit range. Does anyone have any tools they use or recommend to do deal analysis? Do you recommend using a PMC or self-managing to start?

Reply by Christina Calderon

Hi James! I think self-managing at the beginning can be a great way to save money and also learn a lot before handing that responsibility off to PM, even if you can afford it. It will make you a better and more well-rounded real estate professional long-term.

Reply by Marc St.James

@[cmt0vrjy10020wz0nwpm76vwa](James Curtis)Welcome James! I'd probably lean toward self managing at first too especially with only 2-4 units. You'll learn a lot about the day to day stuff that doesn't show up in a spreadsheet.

For deal analysis, I’d make sure you're accounting for vacancy, maintenance, CapEx, insurance, taxes, and not just looking at the mortgage vs. rent. Those extra expenses can change the numbers pretty quickly.

Reply by Daniel M.

Hey James, I agree with both of them. I'd probably self manage at first if you have the time for it. Even if you eventually hire a PMC, knowing the day to day operations will help you understand what you're paying for. For the deal analysis, I'd also run a conservative scenario with higher vacancy and unexpected repairs. If the numbers still work after that, I'd feel a lot better about the deal.