Thoughts/Inputs/Advices!!!: Greeting Countrymen (Women)

[Amol Kulkarni]

Greetings Countrymen(& women),  There might be lot of other posts pertaining to this subject I did read most of them but things have changed due to COVID 19 ( I believe). Pardon me for asking typical newbie questions.

1. Best place to buy a rental property - with good Cash on Cash and little of appreciation ( say 3% each year)

2. What should my strategy be to find this - turnkey guys v/s individual contractor v/s 'doing on your own'. ( I am typical w2 employee.)

3.What’s your take on house market collapse - as you must be aware - lot of people are losing jobs. I just get a feeling eventually house bubble will burst in next 6 months. Supply of house is not that great now. I feel lot of people will have forbearance on loans in next couple of quarters and lastly will either foreclose or sell their house on lesser price. so may be that would be a good time to buy house . What say you?

Again, I would really appreciate your thoughts on above three items.

Big Thank you!

[Oleg Kio]

The questions are rather generic and there are lots of articles and posts giving generic answers, so I'll just post a short reply.

1. I invest in Charlotte area, properties for good CoC and appreciation have been hard to find (if you're a conservative investor.)

2. Do you have the time and the skills to do it on your own? If so, that's probably a good way to start, if no, you'll be in over your head.

Do you know a good, trustworthy contractor? If so, use them. If no, you'll likely lose money if they do a shoddy job or charge you way more than quoted at first.

If the answer to the last 2 questions was "no", then buying a turn key property (or partnering with someone who has more experience} is probably your best bet. Still make sure it's not overpriced and the neighborhood is at least decent. Buying in a bad neighborhood usually leads to regrets.

3. There are probably as many answers to that question as there are BP members :) There are lots of posts discussing this.

I expect house prices to come down but probably not nearly as much as during the last recession. How long it takes will depend on government policies & economy in general.

[Amol Kulkarni]

Thanks Olega - Yes i am going do it in CTL. Do you know any good turnkey or relators in CTL

[James Wise]

Originally posted by @Amol Kulkarni:

Greetings Countrymen(& women),  There might be lot of other posts pertaining to this subject I did read most of them but things have changed due to COVID 19 ( I believe). Pardon me for asking typical newbie questions.

1. Best place to buy a rental property - with good Cash on Cash and little of appreciation ( say 3% each year)

2. What should my strategy be to find this - turnkey guys v/s individual contractor v/s 'doing on your own'. ( I am typical w2 employee.)

3.What’s your take on house market collapse - as you must be aware - lot of people are losing jobs. I just get a feeling eventually house bubble will burst in next 6 months. Supply of house is not that great now. I feel lot of people will have forbearance on loans in next couple of quarters and lastly will either foreclose or sell their house on lesser price. so may be that would be a good time to buy house . What say you?

Again, I would really appreciate your thoughts on above three items.

Big Thank you!

 Welcome aboard Amol. Many cash flow markets available. Cleveland is the one I am most familiar with and it's also very popular with investors across the USA so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

In addition there are tons of other turnkey markets out there besides those listed above. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

• Cincinnati, Ohio
• Dayton, Ohio
• Toledo, Ohio
• Youngstown, Ohio
• Cincinnati, Ohio
• Memphis, Tennessee
• Saint Louis, Missouri
• Indianapolis, Indiana
• Detroit, Michigan
• Erie, Pennsylvania
• Louisville, Kentucky
• Milwaukee, Wisconsin
• Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris scam and/or Morris Invest scam for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

[Amol Kulkarni]

Thanks James

[Amol Kulkarni]

any MFH in Memphis?

[Mike D'Arrigo]

Originally posted by @Amol Kulkarni:

Greetings Countrymen(& women),  There might be lot of other posts pertaining to this subject I did read most of them but things have changed due to COVID 19 ( I believe). Pardon me for asking typical newbie questions.

1. Best place to buy a rental property - with good Cash on Cash and little of appreciation ( say 3% each year)

2. What should my strategy be to find this - turnkey guys v/s individual contractor v/s 'doing on your own'. ( I am typical w2 employee.)

3.What’s your take on house market collapse - as you must be aware - lot of people are losing jobs. I just get a feeling eventually house bubble will burst in next 6 months. Supply of house is not that great now. I feel lot of people will have forbearance on loans in next couple of quarters and lastly will either foreclose or sell their house on lesser price. so may be that would be a good time to buy house . What say you?

Again, I would really appreciate your thoughts on above three items.

Big Thank you!

I wouldn't count on some big collapse. I can't speak for all markets but in Indianapolis and Kansas City, prices are still going up in spite of COVID 19. That's because, as you mentioned, there is so little inventory and that's been the case for the last few years.  

[David Stewart]

Correct Mike, because of growing costs for new construction, all homes under $300K are in extreme demand. Simply put, the margins are small for the builders which means the current homes in that lower price range are going extremely fast.  All throughout the Kansas City area, the average selling time is under a month in that price category.  1.9 months of inventory overall based on closed sales in May 2020.  Now is a great time to flip/buy and hold IF you can find the right deal.  I live in independence and there is plenty of opportunity.  If you're out of state and need a local agent, I can help you out.  Although it's dangerous to speculate, I don't see the costs going any lower and new homes, although nicer, are going to push the rest of the market up.

David Stewart - ReeceNichols Agent

message me for contact info

[Amol Kulkarni]

View is more from realtor perspective!

Sales.. Sales.. Sales is the mantra.. REI needs an honest and truthful assessment of things!

But I shall thank you for your inputs.