All Forum Posts by: Dustin Cook

My wife and I are going to put our Tennessee rental up for sale at the end of the month, and will need to move quickly to buy our next rental property to be able to qualify for a 1031 exchange.  We have narrowed down our next market to either Kansas City or Indianapolis.  We would like to purchase something in the range of $110K to $130K in a nice neighborhood with low vacancy and get at lest 1% rent to value.  Will any of you experienced investors please advise on pros and cons of each of the markets?  Cheers.

The major downside I am seeing is that I wouldn't be able to use leverage, but overall I like how hands off this is.

Has anyone here invested with Holdfolio?  They are a crowdfunding company where you get to own 2% of 10 different properties in Indianapolis for each $10,000 invested.

http://holdfolio.com 

I am debating between doing something like this and buying one or two turnkey SFRs.  I talked to Jacob Blackett on the phone a while back and got a good impression from him.  If anyone has invested with them I would be very interested in hearing how their experience was.

I don't have any set number.  I would be much happier paying closer to full price in an A grade neighborhood with very low vacancy and better chance of appreciation than I would in a B-/C+ neighborhood with higher vacancy and lesser chance of appreciation.  

I do get your point of being at the mercy of the appraiser.  When we bought our primary residence our appraisal came in low because a direct comp of basically the same house next door had just sold.  The appraiser didn't take into account that ours had a nicer rehab and had the foundation repaired and permitted.

No, I meant I would want to buy at less than appraised value in a market like Memphis.

 Agree 100%.  I would want built in equity especially if I were to buy in a market like Memphis.  

Forgive me if my memory is wrong, but when I spoke with Memphis Invest about a year ago I think they told me that I should be prepared for their properties to appraise for less than the purchase price.

Thanks Max, yeah I know about having to refi to get out of it.

Thanks for the replies.  I don't have the exact numbers figured out, but will post them when I get them assuming I'm still in this spot.  I see some are philosophically opposed to it and others are not.

I am currently in escrow for a SFH for my primary residence in Los Angeles. My wife and I took out a cash out refi on her out of state rental property to use for a downpayment on this house. If we were to do a 20% down conventional loan, after improvements we will use up most of this refi money. I have been researching out of state turn key rentals and they seem like a good investment and if this property falls through the cracks I think we will use this money to invest in them rather than buy for ourselves in LA.

The question I have though is, would it be worth taking on PMI to instead put 10% down in order to have money left over in out of state turn key rental properties? Would I be able to cash flow enough money to off set the cost of the PMI?