All Forum Posts by: Alexander A.

Oh and as Bob mentioned. yes you absolutely have to get sold MLS comps on any property you ever want to buy. That is just part of the due diligence phase when it comes to analyzing properties before you purchase.

 Thanks man I appreciate the kind words on my blog.   I typically get anywhere from $220 to $275 of cash flow on my turnkeys.  I think that is a good number.

It is important that the house you buy has new or newer big ticket items like roof/hvac/water heater. etc..  that way it prolongs the amount of time you will have to pay for something big.

From day 1, after closing, collecting rents.  You need to be sure you really put away those projected expenses and stash them away in some bank account. Dont ever use them until you have to.  Ideally, that account will grow and when the day comes to repair anything, you just use that money.  That is how I do it and I have yet to use any of my own money to have to fix something.  I just use the money that I have been getting from the rentals.

Does that make sense?

Also, if you are going to be buying properties of that price range and getting financed, you are not going to find anything that cash flows a lot more than that.  That is just the way it is.

Hey Josh, If i were you I would always bump up the vacancy and maintenance to 10% to be more conservative.  These providers love putting 5% which in my opinion does not seem accurate. 

Based on your numbers im showing that this one has a cap rate of 10.3 which is good and a Cash on Cash at 18.57% which is great.  That is based on a 30 year loan at 5%.

Here are the numbers I used:

Purchase Price:  53k

Rent: $800

Down Payment:  20%  $10,600

5% interest rate on a 30 year note

Taxes:  702 per year

Insurance:  $576 per year

Vacancy:  10%    $80 per month

Maint:  10%  $80 per month

Property mgmt:  10%  $80 per month.

So assuming that the property is in a good area and was rehabbed property I would say that is a winner.   

If I were you and was dead set on selling these here is what I would do.

1) list them on MLS for retail value

2) list them on FSBO, craiglist, the marketplace here and any other website where you can list them. Market them on these sites as turnkey and provide as much details as you can. If another investor will buy these, they want to see numbers.

You can do all these at the same times and see who bites first.

Good luck!

Hi William, is Kansas City Investment the name of the company?

I have been talking to KC providers for the past few weeks looking for a good one and that one doesnt ring a bell.   Im getting ready to go under contract this week as I think I finally found what I am looking for.  

Welcome to BP Michael.  Its all about the research man, I have been down this road and have been able to succeed because of the time and effort I put into it before I pulled any triggers.  Feel free to reach out if you have any questions.

It does not matter where you are at, you need to find a lender that is licensed in the state you will be buying in and find out if you can get approved now.  If they tell you yes, then you should proceed.

If they tell you no, then it will be the same answer when you try and refinance.  I would contact at least 2 lenders.

@Ryne Ray

The first 3 turnkeys I bought were all in indy but now I am dipping my toes into KC.  I am under contract now on a KC house and so far its going great.

Ill PM you all the nitty gritty details about who I have worked with and who my favorites are.

 Funny I went through this same deal here in Austin.  I finally got fed up with it and started purchasing out of state turnkeys.  Since my last rejection, I have now acquired 3 turnkeys and am working on #4 right now.    I dont regret one second of it although deep inside, buying local is what I really wanted to do.   Its just hard to turn down 15%  - 20% deals that I can find out of state.

At what point do you give up on your local market and go out of state? 

6 bedrooms in a SFH? That is really out of the ordinary wouldnt you say? I would call a few PMs and ask them if it would be difficult to rent out a house of that nature. You are either going to get a huge family renting it out or a bunch of singles/friends in each room. Is it near a college/university?

Same thought for exit strategy, would it be difficult to sell a 6 BR house?  

In my local area, 3/2s are the best sellers.  When I buy a turnkey, that is one of the criteria I use to try and make an exit strategy as easy as possible.