All Forum Posts by: Account Closed

Good morning Dennis!

Thanks for the interest. There is quite a bit of BP threads where people have asked the same question you have, or talked about their experiences. To help expedite your search I have posted some links below that should be helpful.

Here are some of the links I was referring to:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?

Hey Aaron!  As you can imagine, I get this question every single day with investors that I am speaking with.  When looking to make your first investment you should really start with the end in mind.  Meaning - what is it you are looking to accomplish?  Have you set a passive income target for yourself, maybe a timeframe in which to achieve this target?  How does this investment play into you getting towards this target?  In a lot of the higher priced markets many investors have a hard time getting properties to cash flow for them.  Many investors I talk to are also foregoing inspections and appraisals while paying over asking just to secure properties in their local markets.  That is definitely one way to go.  As far as getting into two properties in areas that cost less and maybe don't appreciate as well as the market you are in, there are definitely some points to consider there as well.  Diversification: if you have one property and a vacancy - that is 100% of your cash flow, whereas if you had 2-3 it would be half or 1/3 of your cash flow.  Speaking of cash flow - how well do these lower priced properties cash flow in comparison to the investment opportunity you are viewing in your current market?  Many things to consider of course - the short answer is - determine what outcome you are looking for cash flow v. appreciation (of course we all want both - but there is a trade off).  Next, analyze the properties and let the numbers do the talking for you.  Whichever is more in line with your investment strategy and goal is the right one for you.

When making a decision on the investment itself, there are a few things to consider:

1.  Market Analysis - are you investing in an area that will get you the best returns and cash flow?  What are the taxes like in that area?  Is it a landlord friendly state?  What does the future economic and population growth look like?  Answering these questions leads many people to out of state investing, especially when they are in states with high taxes with properties that are going well over asking price already.

2.  Returns - obviously everyone wants appreciation and cash flow.  Look at your cash on cash returns on the property.  It is also helpful to factor in depreciation, appreciation, and paydown of mortgage.  Different markets appreciate differently - are you more of a speculative investor or are you looking for more steady historical performance?  This can dictate what markets to look at as well.

3.  Criteria - different for everybody.  Is this truly an investment to you, or as you said in your post, is it a property that you could see yourself living in or retiring in one day.  This is going to affect your investment strategy - if it is a home that you could potentially retire to one day you are going to be looking at locales that you would want to be in, and not necessarily the best places from an investment standpoint.  If retirement is still far off in the distance maybe focusing on developing a real estate portfolio to ultimately fund the home of your dreams for retirement.

In summary, there are so many factors that go into determining where to invest, but start with the end in mind.  What is the purpose of this investment - is it to build upon your portfolio?  Is this a market for short term or long term rental?  What exactly are you trying to accomplish with the next investment, and what is the best way to deploy your resources.  In some states $80k isn't enough for a downpayment, in other states it will start a small portfolio of 3-4 homes providing some diversification.  Answer for yourself first - what are your goals, what criteria do you have when investing, the resources you are looking to deploy, and the timeline you are working with.  With this information you can develop a plan and strategy to accomplish your goals!

Good luck to you on your journey!

Hello Damon,

I apologize for not getting back to you sooner - it was an oversight on my part and this was the exception, not the standard you can expect in communicating with me.  I am glad we were able to connect today and as always, if you have any questions or concerns moving forward - feel free to reach out to me directly and I will be happy to assist any way I can.

Thank you,

Eric 
 

With so many options out there it is important to ask questions to determine which provider will be the best fit for you.  A good place to start is making sure you understand what any company means when they say "turnkey".  Some questions to be asking to determine this:  are the properties completely renovated, are they newly built, what markets do they operate in, what asset classes do they offer (are there single family homes, multi-family homes, commercial, new development, new construction, etc), do they operate in multiple markets?  Having answers to some of these questions allows you to start thinking about not only HOW you get started in real estate investing, but also what the next steps look like in terms of scaling and diversification of your portfolio.  Working with a provider that can work with you to determine what your needs are and helps you to reach your specific goals.  

Wishing you much success in your real estate endeavors!

Eric

Hi John! We look forward to working with you! I can easily send you over direct contact information for some referrals via email. Here are some other excellent resources for you to also review. We are here to answer any questions you have at any point in time!

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/users/ZacharyCole/references