All Forum Posts by: Dan Tsunekawa

great great info! Thanks so much for taking the time BreAnn!

Hello BP!

I was looking at my insurance coverage on my san diego rental yesterday and i noticed the replacement coverage is way closer to the purchase price from several years ago. close to $300k, where as the value today is probably closer to $450k. Is this something that we need to be monitoring as investors to make sure our coverage stays aligned with market appreciation?

Thanks in advance

Check out Kathy Fettke at Real Wealth Network. They have a pretty extensive vetting process for turnkey companies.

Welcome to the bay Mark. I am in a livermore , south of you. Funny enough I am looking to invest more in Kansas City. Let me know if I can be of any help to you.

Hi David. Is house hacking an option for you? If you could buy a duplex or triplex you would have the potential appreciation(not as much as a single family) and you can rent out the other units to help with the mortgage. Just a thought.

Thanks all for the great feedback. I guess i was loose with the 'turnkey' word. I do understand that this is not really a turnkey investment model. 

I spoke on the phone today with Third Axis Investments out of Kansas City today. They have a slightly different spin on turnkey investing. They source the deals with the investor. They investor puts up money for cash offer and the money for the rehab. Third Axis uses their contacts and volume to oversee the project and take a flat consulting fee. Weekly videos and updates are sent to the investor during the rehab. Once it is complete they have property management in place to finish the process.

Typically they find deals with built in equity. ie buy for $80k add $20k rehab, ARV $120k. So even after a 6k-8k fee, there is still 10k of equity in the deal. Also since the investor fronts the cash for the deal, there is no hard money fees passed on to the investor.

Obviously there is more risk. But the idea of BRRR from afar is pretty appealing if you have the upfront cash to make the deal.

Has anyone had dealings with this company?

I've asked them to start sending me deals to analyze.

Hey Thomas I am actively looking to invest in KC. I'd love to take a look at your numbers if you wanna PM me. I'll help anyway I can. Thanks

I am also curious about Lake Tahoe as an investment market. Are you thinking of using it for short term rentals? Or do you have another strategy in mind? How would you manage it?

Hey Roman, as another option you could consider refinancing to a lower fixed payment. $231k over 30 years at 5% might get you your $250 a month. That said, not many people on BP want to merely 'break even' on their rental props. However it could give you more time to learn and research 1031s and pick a new rental market outside of the Bay.