All Forum Posts by: Brian Goodwin

@James Wise

@Alex Craig

@Andrew Johnson

Your advice is sound in that you need to analyze each deal...and that the deal can come from anywhere...can't imagine anyone could argue with that. 

My issue is trying to analyze each market (not literally every single one, but even the 3 or so that I've narrowed my search down to), then each turnkey or realtor/PM/contractors in that market, then each neighborhood in that market, then when I do find someone that seems reputable trying to confirm after buying the property and getting the initial tenants in there, but long term will the PM will continue to treat me the same over many years?

I don't want to be taken care of only in the beginning...I imagine this could be pretty common. You find a deal either thru a realtor/PM or thru the turnkey and for the first few years everything is great...it's rented out the tenant pays on time, but my concern is after a few years which teams will still be fighting for you and your property to get it filled with a quality tenant after the honeymoon period. And I do think there are things you can do to limit this risk (multiple positive reviews of PM team, Type A/B+ properties/tenants, etc).

I've gotten a lot of advice and it's hard to know who is just a "salesman" and who is what they are advertising. 

I know I'll get there eventually it's just time consuming! And I also believe that you can sit on the sidelines forever waiting and watching and at some point you just need to get your feet wet, because even the best plans will have some surprises.

@Lumi Ispas

@Alex Craig

@Steven Gesis

@Mike D'Arrigo

I'm mostly looking for cash flow (but am expecting that the property would at least keep pace with inflation...anything above that is gravy). I have other investments (vanguard total market, reits, primary residence) so again really hoping for a type A/B+ type property/tenants. 

I have noticed that the "comps" in the area of these turnkeys are generally 20-25% higher, but some of that can be explained by the rehab they perform. If a turnkey provider is selling me a home for $100K and the comps in the area are more like $80-$85K, but the roof, HVAC, flooring, plumbing, electrical, etc are all new then I don't feel like I'm being ripped off. Obviously I'm still paying a premium, but a little markup isn't unreasonable to me if I can be hands off and hopefully have very few issues for the first few years (assuming the PM can get a quality tenant)...which is again why i'm shooting for a type A/B+ property/tenant.

Will definitely reach out to a realtor to get input and have a home inspection done.

Brian

Everyone,

Appreciate the input...it's been very helpful.

I've looked at sales prices for a few of the turnkeys I've been considering and didn't realize how much more the turnkeys actually charge (based on comps). I'm starting to believe that my best bet is to find a realtor/PM team and find a property that is pretty much move in ready (or maybe with some minor upgrades). 

I know this is probably obvious to a lot of you more experienced investors, but this is what is becoming apparent to me...so are there any realtor/PM teams out there that you would recommend in the Midwest? I'm open to locations at this point (though I have already been looking in Chicago, Memphis, and KC).

thanks again,

Brian

thanks for the info guys...keep it coming in!!

I will be following up with many of the recommendations mentioned.

Hey Community!

I am interested in purchasing real estate out of state (live in SF) and was leaning towards using a turn key outfit just for simplicity. I understand that there are some good ones and some bad ones and have done a lot of reading/research, and ultimately feel comfortable using a few outfits that are out there (i.e. Memphis Invest, Mid South, Elite Invest). 

I also understand that I would be paying full retail price for turn key, but if it's truly passive with a good PM and good tenant (i.e. Memphis Invest with a 2 yr lease with hopefully minimal maintenance/repairs and an average tenant stay of 4 years and 4% vacancy) then it is probably worth it for me.

I also understand that if I had a realtor/PM team "on the ground" I could probably find a property below market value, but then would need to have the realtor/PM team fill in the gaps (possible repairs, possible vacancy, etc).

Things I am looking for: hands off (passive), decent cash flow ~10% after all expenses (mort, interest, prop mgmt, prop taxes, repair/mait, util, vacancy, etc), and QUALITY tenants.

Are there any realtor/PM teams out there that you can recommend over using the turn key providers???

Really appreciate any feedback...thanks,

Brian G