United States, Justin, Jason discussed on BiggerPockets



What your expenses in property management usually we can get it for about five to six percent locally if you're giving them a lot of business so we run our five or six percent cost in you know at that point? It makes a lot Jason. It has the price to have two full time salaried people in addition to we also can control the maintenance cost because because we want to be thrifty may bad or not bad property management lazy managers that send the first handyman they find the charges three times what your guy would pay. That's your biggest expense with single family housing yeah. That's how I pull my hair out on like Justin how much on a toilet and like I just can't I still have that bed sheep side to me who are Mike. I'm not paying that yeah so we just putting together I systems and that's where you have to look at your portfolio <unk>. How much time do I have? You know if I'm a Microsoft Guy. I'm probably still GONNA use property management because I'm not a fulltime investor at that point and so for me being a fulltime investors my business so I you know we had hiring staff accordingly. Yeah that makes a lot of sense in a lot of a lot of real estate. What I found is like if you can get to that certain level there is at level at twenty units? It might not be worth it that you can't hire some. It's not worth it to hire someone in house to run that at thirty units be worth it. You're still doing it yourself but it'd be as point. Maybe it's at one hundred units maybe at two hundred where you can bring that in house and then lower your costs. It's almost like I'm looking at this with mobile home parks right now with other with apartment complexes. What number do I need to get to where everything gives them comes cheaper at that point because of the scale so like I'm not saying I'M GONNA go by bad deals but when when I can look forward to is hey I can drop that property management cost from zero seven percent down to three percent once I get over two hundred units because then I'm going to bring it all in house or something? It's another interesting way to look at a kind of a three dimensional deal perfect dear return especially. If you're in a stabilization period. We're like okay. I'm making ten percent. Can I get it to eleven by doing nothing and urged by by changing thing not giving nothing but changed things around definitely well. Hey I want. I want to move US along to the next segment. The show and dive deeper into one particular deal so it's time for Dale. Hey it's brandon wanted a quick break from this podcast to invite you to this week's bigger pockets webinar which like an online class and this week is going to be something that's really really popular around bigger pockets how to buy small multifamily properties because look will depend probably changed my life and they could be one of the best real estate investment vehicles out there especially those who are fairly new to real estate. There's so many benefits to bind small multifamily properties which is why this week I'm going to be dedicating ninety minutes of just direct training on how to start with this. You'RE GONNA learn how to find them how to analyze them how to finance them <hes> as well as some of the dangers. There's like four specific dangers. I call out that you should know before you even make an offer so don't miss this just go to bigger pockets dot com bombsite multi Webinar Again M. U.. L. T. is oh bigger. POCKETS DOT com slash multi Webinar and I will see there are I the deal deep dive is the part of the show where we dive deep into one deal. You've done and ask a a series of questions about it so let's see you've got a property in mind then before I asked the questions yeah I got one. I just closed on Murray list one of them to come up with rental pseudo perfect. I was the first question rushes. What kind of property is this as multifamily single family and then where is it so it's in Olympic hills in Seattle Washington which is about ten miles north of downtown? That's good transitional..

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