All Forum Posts by: Colin C leamy

I'm going to need (or want) a bit of hand holding on my first purchase if it's not turnkey.  But I'm not sure what exactly I can offer an investment partner though as I have no money saved and no real estate skills. Quite the conundrum.

I don't understand, how do you get forced appreciation out of a turnkey property? The turnkey companies flip the property before selling it to you.

Then again, if I drop 20k on a down payment for turnkey with no equity it will take 5+ years to make my money back. All of the sudden it's not looking so great. Am I missing something?

My short term goal for passive income is only $800 per month, eventually I'd like to hit $2k per month.

I'm considering turn key for the lack of risk. Equity isn't as important to me as the passive income I'd receive. Although scalability is a problem.

I have a few questions about the process though.

I hear nothing but good things about Memphis Invest so I would probably go with them first.

This is probably a dumb question but I want to be sure, if I get approved for a mortgage for a property offered by a turnkey company such as Memphis Invest, the monthly mortgage is included in the pre-ROI analysis right? In other words I would not have to pay any fees out of pocket other than the down payment?This would mean the only prohibitive factor for turnkey scalability is the down payment factor?

What are the range of prices I can expect for the rentals they offer? I would aim for a minimum of $200/month ROI.

I've spent the last few days on Zillow looking around Florida for "deals" that are $40k or less and I've spotted a handful of reasonable deals to my newbie eye but there are so many variables I am unsure about. Far too many.

What areas should I be looking in? What is a realistic rehab budget for these types of houses?

Can I realistically buy a $40k or less property in Florida and make a reliable positive ROI? My family members are talking my ear off about how I'm just going to fail and go into debt. They are the most glass-half-empty people I know so I'm not foolish enough to listen to them but it's not helping my outlook.

I'm fearful of the short term money loan option in the BRRRR, I lack confidence and experience. I think it might make more sense for me to live in the house to eliminate holding costs and do some of the rehab myself (which I know nothing about).

My goal is to make $2000 per month of passive income from rentals, heck even $800 would be a life changing amount, but my current life situation makes it extremely difficult for me to save money and leaves me with little to spend, thus I can only afford maybe a $40k mortgage.

It's really difficult to see where I can fit into this, maybe I'm just fooling myself and I cannot enter real estate? I don't really have anything to offer a third party investor.

But if you use your refi to pay off a hard money loan then you aren't recycling it, the cycle ends there.

I have a question about the BRRRR strategy.

I originally thought that the BRRRR strategy entailed buying the house, rehabing it, renting it, refinancing it, and then using the refi loan for a down payment + rehab cost for the next house.

But now I hear you are supposed to use a short term loan to buy the house and use the refi to pay back the short term loan, in which case you are back at zero when you need to buy the next house.

Would someone mind clearing up my confusion?

I'm already living as cheap as is practical in my situation. My hands are tied, there's nothing more I can do. For now I need to focus on what I can do within my current means. 

I've wracking my brain trying to figure out a method of entry into real estate investment even though I can't afford it.

My credit score is good and don't really have any debt but I make very little money and there is no easy out in my particular situation. 

I tried asking family members to do a joint investment deal with me, even offering to pay all of the mortgage expenses but I am not so lucky.

I can afford to pay a mortgage up to maybe $400 a month before it starts becoming too much of a burden. Yes, I am that poor but I don't wish to get into the specifics of my situation.

In any case, I feel comfortable with a mortgage up to $40k probably but lower is better and I just don't have the resources to do a complete BRRRR unless it's a steal.

I'm thinking maybe I can purchase a house using FHA and "flip" it at a pace I can afford and then reinvest to spark the snowball.

Any thoughts on this plan? Any thoughts on what sort of house I should look for and how to find it?

I don't understand why you can't just do a normal turnkey and then refinance it later?