All Forum Posts by: Daniel Mendez

Hi there. I live and currently invest in Columbus but interested in exploring the Cinci market. I spend a few days a week in Cinci. Looking for recommendations on realtors in the Cinci area that understand the investor market

Great way to describe it Steve. Comes down to time. Do you have the time to do it, to learn, to find all vendors? Some investors have more time than others and everyone values their time differently. Pick the one that fits you best. BRRR does not work for everyone.

@Steve Vaughan I love the comparison! 

I agree that there's some solid middle ground as well. 

I've seen hundreds of out of state investors buy existing rentals in OKC. So these properties aren't fully rehabbed but the seller is taking care of all structural, safety and mechanical. Also there's already a tenant in place, so you know what you'll make from rent and that it's cosmetically acceptable to rent. You're not paying top of the market, because it's not been fully rehabbed, but you're also not putting in a ton of work either. You factor for the appropriate amount of maintenance that is likely given the condition of the house and if the numbers still make sense you're good to go! There's not a ton more work to be done, because property management takes care of those requests. 

@Daniel Mendez We work with a lot of OOS investors and I generally don't recommend a new investor to take on highly distressed property. It's a lot of trust, risk, and stress. I'm not always a turn-key fan for the reasons listed above, but it is a great way to start a portfolio. IMHO, I think that the first home in your portfolio is going to determine the strength and ability to grow as time goes on. It's really the foundation of your portfolio, so I recommend less risk for your first home or two. This will also give you more time and experience with your team. When investing OOS, trust and communication is vital. I recommend you visit your target city, interview several professionals/providers in the area, and network with other OOS investors in your target city. Start with something easy like turn-key or a near "rent-ready" MLS home. The ROI will not be as great, but you will learn a lot. I always recommend finding something with predictability, not speculative neighborhoods or "pigs" marketed as "cash-cows." What seems to be a "cash-cow" tends to get "milked" every year or two when your tenants move out.

You won't be able to BRRRR a turnkey property. In all likelihood, you won't be able to get any built-in equity upon purchase and will likely be into it for a bit more than it's worth. Some turnkey companies are good (some are not) but they're really for passive investors IMO