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Get a property manager.
From experience, dont do it in TX. Wish someone had told me that.
Why? Mind elaborating a bit more? I know the real estate taxes here are quite high so margin can be thin
I did it. Get a property manager 100%.
Don’t do it in Texas. Property taxes will eat any gains unless you have zero mortgage.
I’m literally paying 2.7% in Forney. Granted, I have a new build that can command a higher rent. But I understand what you’re saying. It’s slim pickings.
Partly depends on whether you’re talking short or long term. Without a core group of reliable people (cleaner, handyman…), it’s not going to be possible managing it yourself.
We live in NYC and own in Poconos, PA, and have a property manager.
Out‑of‑state is doable, but I wouldn’t try it without a property manager. Their fee can sting, but if the numbers still work after management + maintenance, it’s worth the peace of mind.
It’s not that bad if you can make friends with the agent who you can pay to be your property manager. They can rent it out for you. After that all maintenance is calling someone and making sure tenants home at that time.
I have a side IRA which is truly self directed. That IRA bought a 'turn key' property in another state (Missouri, I'm in Ohio). I overpaid for the property and failed on my due diligence. The operator (property management) went under and I sold at a loss (-20% in 2 years) just to stop the bleeding and redeploy. I'm in private credit and syndications now as a LP (limited partner). I thought since I'd been a low key slumlord with single families locally for 20 years I had the knowledge I needed to do this. (ok, not a real slumlord just 3/1 blue collar affordable houses bought well, +elbow grease = instant cashflow and equity). But I was wrong. I failed and bailed. And holding RE in an IRA is not very smart since part of RE benefits are in depreciation. It was never get rich quick I was planning a decade of illiquidity and positive cashflow. It was none of the things I wanted or planned on, and I won't be doing it again. I'll take 8-10% more passive returns and not swing for the fence going forward.