It's crazy, I just call a contractor I trust and they fix it, and then charge enough rent to make sure it covers anticipated maintenance, and then have a business insurance policy to protect against big disasters.
Charging enough without leaving the property empty can be a challenge. As is finding tenants who won't trash the place so often you lose money on all the repairs and turn over.
Depending on the market that may be so easy you'll think everyone else is stupid. Or it may be so hard you wonder if you are doing something wrong.
- you previously spent time building relationships with contractors. You didn’t just type in property management in Google
- a significant overhead goes to insurance and management. Your comfortable putting money as needed into the venture. You have knowledge of legal pitfalls of being a landlord.
- you regularly spend time managing these contracts
Sure, but you're managing the property. And that's great! Many get into RE thinking it's a set it and forget it type thing. That's not the case. But the work is pretty well understood and it can be done as a side gig, making it great for someone who wants to add to their income.
I know a number of people who have done very well with RE, but they all actively manage their properties.
Wow, I'm a genius!