Turnkey investment resources for Apartment and other non-SFR

[Snehanshu Ashar]

Hi all, I am a newbee on this forum, hoping to get some guidance on my upcoming 1031 exchange.

Scenario:

I am selling my rental property with a 300,000 mortgage, and expecting to sell it in the range of 1,000,000, i.e. 30% LTV (simplified numbers with similar ratio).

I am planning to reinvest in with 1031 exchange and have a bunch of questions on that. This post is about alternatives to SFR turnkey investments.

I have only self-managed a couple of SFO Bay Area SFR rentals, and looking to explore alternatives after my 1031 exchange of one of those properties.

I have looked at a few turnkey or rental SFR investment sites such as roofstock (not sure if they are turnkey or just facilitate investments by providing rental estimates and guarantees based on as-is properties), doorvest, renttoretirement, and turnkeyinvestproperties.

Are there popular and/or convenient options to look for, buy and manage larger complexes (apartments, commercial etc.) similar to the above list of options for SFRs? I posted another question about leverage. Assuming that I can increase the leverage in my 1031 exchange, I want to explore options of one or two large purchase(s) with similar returns instead of buying 5 to 10 SFRs, but have no idea where to look for those, and how to analyze the deals and management.

[AJ Singh]

@Snehanshu Ashar

you cant compare the quality of your asset with whats available on the marketing sites in southern and mid western states mentioned above. The neighborhoods and tenant quality are not the same. you can refinance your existing asset in bay area and then explore the market you want to be in. i am in the memphis market and can affirm the deal flow from good neighborhoods is non existent right now. the SFR prices have shot up in price considerably at 2 to 3 X

The deal flow from Inland empire in southern ca is actually better and numbers are the same as OOS investing.

I would encourage you to look at an hour away from SFO e.g. Tracy.  another area can be Sacramento, Central Ca cities like Bakersfield. in southern ca, Riverside County is getting good rental yields and appreciation. 

Do your due diligence and remember you cant buy assets at cheaper prices anymore in california anymore. Dont sell a house in california unless you need to  upgrade your primary residence.. 

[Brian Garlington]

You will find that if you are trying to do a 1031 Exchange into a Syndication under a certain amount then it will be problematic and most syndications will want that amount to be pretty high.