I have been a real estate investor for just over two years. This question centers around “opportunity cost.” I ALSO own and work in a lawn care business, own and run a small web design business, as well as own and manage several single family and multi-family apartment buildings. (43 units)
When I’m actually earning income in the lawn care business, my gross hourly rate is $60-$70 per hour before expenses. (and expenses are pretty high in that business – fuel, equipment, insurance, etc.). In my web design it’s hard to say. I don’t make ANYTHING “running” it on a per hour basis, but when I’m doing a paid task, it’s $50-$100 per hour with VERY low overhead.
Now, in my rental RE business, because I’m not trained in carpentry, handyman stuff, etc., I tend to be fairly inefficient in those areas so I hire out. In addition, my cracker jack painter gets $20 per hour (and he’s good, and he’s FAST). My two handymen get $16 per hour. I have a “higher end” carpentry team that gets $25-$30 per man-hour. I want to make an intelligent decision on where to spend my time.
When I’m actually earning income in the lawn care business, my gross hourly rate is $60-$70 per hour before expenses. (and expenses are pretty high in that business – fuel, equipment, insurance, etc.). In my web design it’s hard to say. I don’t make ANYTHING “running” it on a per hour basis, but when I’m doing a paid task, it’s $50-$100 per hour with VERY low overhead.
Now, in my rental RE business, because I’m not trained in carpentry, handyman stuff, etc., I tend to be fairly inefficient in those areas so I hire out. In addition, my cracker jack painter gets $20 per hour (and he’s good, and he’s FAST). My two handymen get $16 per hour. I have a “higher end” carpentry team that gets $25-$30 per man-hour. I want to make an intelligent decision on where to spend my time.