All Forum Posts by: Abdul Azeez

@Chris Mason I haven't yet done the appraisal yet but am trying to prep myself when the time comes as to how I would react. That's the reason for asking this.

@Account Closed The strategy is a long term buy and hold. I am just worried whether if I need an exit strategy to get out, will people try to buy at the appraised value or at market value (which I assume is what I paid).

@Zach Quick Keeping aside the philosophical debate on turnkey or not, by other numbers I mean the overall return, monthly cash flow, debt coverage ratio etc. Per the turnkey provided, the appraisal is just one person's estimate of value. For the purposes of answering this question, assume I have made the decision to go turnkey, is it ok to consider a property if it appraises below the list price?

Folks - When buying from turnkey provider, if the appraisal comes lower than list price, is it still worth buying the property if the other numbers make sense?

@Jon Q. I do appreciate that every strategy does not apply to everyone but "Develop a investment strategy where you can effectively self-manage" is very generic and does not really provide any tangible input on the how aspects. As i said, as a non local investor it is very difficult to self manage and get the right contacts to do what needs to be done. That's where trusting a reputable turnkey company may help. In terms of full disclosure, I have no affiliation yet with any turnkey company where I have purchased an investment yet. I am in the same league as countless others looking to make their lives a bit better by investing in real estate.

@Jon Q. Can you be more specific on the "other" ways you have indicated above that would be good for an out of state investor who does not have hands and feet on the ground and needs to rely on people to get the property rehabbed, rented and managed if not the turnkey route?

@Caleb Heimsoth Your numbers are off. This is how it breaks out. You have forgotten that prop management takes 1 month rent for tenant acquisition. If you assume an average tenant stays 3 years, I have used the 1/3rd of this amount added to property management. Secondly, if the tenant renews after 2 years (given Memphis invest does a 2 year lease), you will pay $250 renewal fee. I have also used 1/3rd of this amount to property management. So, overall you are getting $142.64 on cash flow per month.

i am sorry but I thought OP was an out of state investor or that's the post I believe I was responding to. If not and he is local and his dad is a contractor he should definitely explore the avenue rather than turnkey.

Check out turnkey investing.

2% rule is not realistic in many places. 1% has a better chance.