All Forum Posts by: Forest Skufca

 Hey @Nick Baldo!

Glad I was able to help! I'd be totally down to connect. I just sent you a request.

Let's talk further!

Also, congrats on putting the duplex under contract! Househacking for the win. 

@Tim Lynch congrats on taking the first steps to investing in real estate!

You’re off to a good start by researching multiple markets and it’s great that you are comfortable reaching OOS to achieve your goals. Memphis is a great market, and so is Huntsville, AL!

Something @Jay Hinrichs mentioned,  having boots on the ground for your property managers is super important. Additionally, something I’ve learned is that the type of tenant you put in place can also make or break your investment. Investing in higher quality homes in class b/a neighborhoods may have a higher buy in, but produces a better tenant that pays on time (or pays at all), and doesn’t destroy the house or the things in it. Plus they have great cash flow!

Also, a question asked earlier is would you be open to a turnkey REI? A good turnkey company will often take care of potential major capital expenses on the property such as roof, HVAC, water heater etc. on the front end. They will also often guarantee the rent and maintenance for certain length of time.

Let me know if you have any additional questions! I’m always happy to help!

@Leela Weiss First of all, welcome to BP! And, congrats on taking the first steps into real estate investing!

You are on the right track and asking all the right questions, so keep it up! If investing out of state is an option, what markets are you interested in? Also, have you thought about higher-quality SFH instead of multi-family?

I know there are amazing deals to be found in the multi-family space, however, something I often ask investors weighing the pros/cons of single-family and multi-family is this - When is the last time you drove by a tri-plex or quad-plex and just thought, "Wow, what an amazing house! I would love to live there!"? The response I usually get is a chuckle. Because they know those properties aren't always the nicest, they often aren't in the best neighborhoods, and they ultimately wouldn't want to live there either.

What can make or break your investment is the quality of tenant(s) you attract and put in the property. Again, I know there are great multi-family deals out there and tons of success stories, so I'm not saying they can't be found or that they aren't successful.

However, if you could achieve the same results with one or more higher-quality single-family homes that cost just the same with less risk, are in nicer areas, and attract a better quality tenant that pays on time, doesn't trash the house, and is pleasant to work with - which would you choose?

Additionally, I know there's some hesitation with using a turnkey provider, however, the key is to do your homework to select a great company that checks all of the boxes and operates in the markets you want to be in. When you do that then you get security in your investment because the properties have often been rehabbed to address potentially large capital expenses, you get the right to be picky and choose an investment that meets your goals, you earn passive income as they should manage the property, and a great company will stand behind their "numbers" and guarantee the rent and maintenance for 1-2 years. You can also choose to go with a provider who only works in class b neighborhoods as those properties tend to have higher quality homes with better tenants.

Again, you have the advantage here and you have the opportunity to be picky and take your time! There are great deals and strategies for markets all across the country. It really comes down to your goals and what you wish to achieve from your investments.

Let me know if you have any questions! I'd be happy to help in any way I can!

@Shafi Noss Congratulations on taking the leap into real estate investing!

I've responded to a couple of other threads very similar to yours and I'm trying to avoid copy/paste. But, my hope is that the information helps you and others out who are in a similar position.

So, quick question. If your goal is cash flow and experience, have you thought about higher-quality SFH?

I know there are amazing deals to be found in the multi-family space, however, something I ask investors weighing the pros/cons of single-family and multi-family is this - When is the last time you drove by a tri-plex or quad-plex and just thought, "Wow, what an amazing house! I would love to live there!"? The response I usually get is a chuckle. Because they know those properties aren't always the nicest, they often aren't in the best neighborhoods, and they ultimately wouldn't want to live there either.

What can make or break your investment is the quality of tenant(s) you attract and put in the property. Again, I know there are great multi-family deals out there and tons of success stories, so I'm not saying they can't be found or that they aren't successful.

However, if you could achieve the same results with one or more higher-quality single-family homes that cost just the same with less risk, are in nicer areas, and attract a better quality tenant that pays on time, doesn't trash the house, and is pleasant to work with - which would you choose?

Just a thought!

Let me know if you have any questions! I'd be happy to help in any way I can!

@Audra Luther You are in a really great situation! Already cash flowing and the opportunity to sell and grow your portfolio/monthly income is just a awesome place to be. A lot of investors would love to be in your position!

A couple of questions for you. Are you open to investing out of state? If so, what markets? And, have you considered turnkey properties? The reason I ask is that selling the home and using a 1031 exchange as suggested above would allow you to either buy a couple of properites in all cash (depending on the total amount of liquid capital), OR you can diversify across several properties at 20% down to achieve $300-500/month in cash flow per property. So, if you can turn one property into 4 or 5 all cash flowing at $300+ you've now tripled (or greater) your monthly rental income. 

I know there's some hesitation with using a turnkey provider, however, the key is to do your homework to select a great company that checks all of the boxes and operates in the markets you want to be in. When you do that then you get security in your investment because the properties have often been rehabbed to address potentially large capital expenses, you have the right to be picky and choose an investment that meets your goals, you achieve passive income as they should manage the property, and a great company will stand behind their "numbers" and guarantee the rent and maintenance for 1-2 years. You can also choose to go with a provider who only works in class b neighborhoods as those properties tend to have higher rent and better tenants.

Again, you have the advantage here and you have the opportunity to be picky and take your time! There are great deals and strategies for markets all across the country. It really comes down to your goals and what you wish to achieve from your investments.

Let me know if you have any questions! I'd be happy to help in any way I can!

@Drew Lied Congrats on getting started on your journey to financial freedom! And, welcome to BP!

If your goal is cashflow, have you thought about higher-quality SFH?

I know there are amazing deals to be found in the multi-family space, however, something I often ask investors weighing the pros/cons of single-family and multi-family is this - When is the last time you drove by a tri-plex or quad-plex and just thought, "Wow, what an amazing house! I would love to live there!"? The response I usually get is a chuckle. Because they know those properties aren't always the nicest, they often aren't in the best neighborhoods, and they ultimately wouldn't want to live there either. That may be different for Philly, but that's been my experience around Memphis, Huntsville, and DFW.

What can make or break your investment is the quality of tenant(s) you attract and put in the property. Again, I know there are great multi-family deals out there and tons of success stories, so I'm not saying they can't be found or that they aren't successful.

However, if you could achieve the same results with one or more higher-quality single-family homes that cost just the same with less risk, are in nicer areas, and attract a better quality tenant that pays on time, doesn't trash the house, and is pleasant to work with - which would you choose?

Just a thought!

That's where you would need the help of someone who specializes in doing a 1031 exchange. I don't believe you can use a 1031 for repairs. That's what makes the turnkey environment great for people in a similar situation as you that want a buy and hold property.

If you have or can acquire the funds to do the rehab then you could buy one or more properties that need work and still go slightly above the funds from the 1031 in the purchase price. But, that could get a little tricky on the backend.

@Everett Batten Congrats on getting started on your journey to financial freedom!

To piggy-back off of something @Zack Brent said, boots on the ground in the area is the key. Especially in Memphis because the market is so "pocketed". You know this as well since you are from Memphis, but for those that may not - two identical houses in Memphis within 1 street of each other can achieve incredibly different results based on the street you are on.

This is even more true for multi-family. I know there are amazing deals to be found in the multi-family space, however, something I often ask investors weighing the pros/cons of single-family and multi-family is this - When is the last time you drove by a multi-family home and just thought, "Wow, what an amazing property! I would love to live there!"? The response I usually get is a chuckle. Because, as Caleb mentioned, they know those properties aren't always the nicest, they often aren't in the best neighborhoods, and they ultimately wouldn't want to live there either.

What can make or break your investment is the quality of tenant you attract and put in the property. Again, I know there are great multi-family deals out there and tons of success stories, so I'm not saying they can't be found or that they aren't successful.

However, if you could achieve the same results with one or more higher-quality single-family homes that cost just the same with less risk, is in a nicer area, and attracts a better quality tenant that pays on time, doesn't trash the house, and is pleasant to work with - which would you choose?

Just food for thought!

Hey Ben! 

Welcome to the BiggerPockets community! You're in the right place to ask questions and I would be happy to answer any that you have. Let me know if there is anything I can do to help! 

Got it! Unfortunately, you are relying on their promise to manage your property. You're right that it shouldn't take this long, however, as I mentioned, I'm glad they have heard your feedback and are making changes to improve your experience. I hope your situation turns around quickly!