All Forum Posts by: Abdul R.

 Good points.  Can you just explain exactly what you mean by "those appraisals always come back for more or at list price." Appraised values are more then the list price? Isn't thst good? 

 Your right about that. But thinking about purchasing from an investment portfolio, they seem to offer 10-15% discounts when you buy multiple properties. Fshomes for example has a 4 home deal I'm seriously considering. Thoughts?  

 Regarding a portfolio loan to cover 4 or less properties,  would that count as one mortgage? Or 4?

Thanks for the advice everyone! I decided I'm just going to focus on cash flow, and have my initial goal to  be rent free in  5 years.  

If house prices drop in the bay area again, I guess I could always sell the turnkey homes or maybe borrow money from family.  

 Thanks Lane. Exactly what I was thinking.  I believe there are ways to work around the 10 mortgage limit, and from what I hear is it possible to have my wife buy her own 10 properties as well without encountering major stumbling blocks?  Thoughts on this? 

 From my calculations, I can purchase 3 turnkeys a year with financing.  Each one netting a conservative 225 a month.  675 a month first year x 5 =3375.  Ok,not 3500  but close enough. So 15-16 homes. What your  thoughts Jay? 

 Thanks Larry for the input.  I sort of realized myself the  numbers don't add up, especially in light of fha max loan being  625,000 here   but I have looked into trying to be rent free in 5 years via turn key rentals.  I believe this goal is reachable if I work hard enough. 

Hello, 

Bay area native here.  Looking to invest in turn keys untill the passive income allows me to be  rent free by year 5 ( provided I have an flow of income at 3500).  From there who knows,  but that's the current goal.  

I have narrowed down my markets to Indianapolis, Memphis and Kansas city.  

They all seem preety similar in terms of cash to cash percentage gains.  Still not sure what provides better equity,  as that would be a plus.  Anyone have advice as to which starting market would be best? 

Companies the caught my interest are fshomes, Memphis invest,  and buyMemphisnow.  No turn key company I'm familiar with in Kansas city.  Any suggestions there? 

Hello All,

 I am 30 year old male, trying to eventually buy in the CA Bay Area in about 4 years but will need a massive down payment (looking at roughly 160k)). I ran my numbers, my household saves roughly 3,300 a month. so technically in 4 years we can do it. Having said this, is turnkey properties something I should pursue? I say 4 years because eventually we want to start a family and schools in my area are not exactly up to our standards and don't want to rent at that point. 

I found the following deal via buymemphisnow in the 38116 area code at Memphis and ran the following numbers: 

• Purchase price: 75,000
• Down payment (25%): 18,750
• Rent: 850.00
• Monthly Expenses: -268 (mortgage) - 106 (taxes) - 85 (property management fee) – 85 (vacancy, 10% of rent)) – 42 (repairs, 5% of rent) – 50 (insurance) = -636
• Net income: 850 Rent – 636 expenses =
  • i.   214.00 monthly
  • ii.  2,568 yearly
• Cap rate: 5784 (yearly net without mortgage)  / 75000 = 7.7%
• .2568/ 18750 = 13.7% cash on cash return. 

1. Looking at the numbers, I can potentially keep investing in properties such as this yearly until year 4 and net 20,640.00 (1,720.00 monthly), excluding any rent increases. Having said that, should I then do a FHA loan, and use the extra income to pay off the PMI for 800k home (650.00)? Or would it be better to do the "traditional" way and save for down payment via saving from our salaries.

2. With a 214.00 monthly net, I feel like one major repair issue can destroy a year of revenue even with setting aside 5% for expenses. Whats everyone's experience on this? Do I need to add a warranty as well  with the 5%. 

thank you