All Forum Posts by: Irina C.

@Derrick Walston thank you!!

@Caleb Heimsoth sorry to hear that you had a bad experience investing long distance and thanks for sharing your thoughts.

@Basit Siddiqi thank you

@David Abbate not sure what you are trying to say

@Caleb Heimsoth thanks for your feedback. The cash flow is calculated regularly with the rent minus monthly expenses and minus P&I. In my monthly expenses included are 5% vacancy, taxes, insurance, 8% property management cost and 8% R&M, P&I is as mentioned $322

@Darius Ogloza thanks, yes I'm happy to do that. I'm tracking all cost over time and will be sharing it here. Feel free to remind me as well

@Anthony Jasmine I would not recommend using a provider but to look by yourself on the MLS. I looked into different providers and my numbers never worked. I basically found this place on the MLS, figured out at what price my numbers work and had my agent negotiate with the sellers agent.

Hey y'all ;) I wanted to share my first success story here that relates to turnkey investments. I had a lot of trouble finding positive posts about turnkey investment and thought I will share this here. 

For some background, I have been investing in CA and decided to branch out this year into Florida (Jacksonville). I'm not a full-time investor (I wish!) but have a pretty busy C-level exec job in a start-up. Nevertheless, I wanted to invest more and was super excited to try the BRRRR strategy.

When I started out in January this year with "out of state" investments and wanted to find an opportunity to do a BRRRR I realized that there is no way I can combine my busy job with the time investment needed to successfully apply this strategy. Despite of having built an amazing team in Jacksonville, it was still not realistic for me.

Hence I looked into turnkey investments. My first thought was to go on the websites of turnkey providers and see if I can find anything that would work with my numbers and it was far from that, so I told my realtor that I want to find a turnkey property with my specific numbers. Aaaaand I did ;) Here are the details:

- asking $109k USD

- purchase price: $88k USD

- downpayment 20%

- rented out for $1300 thanks to my amazing Property Manager @Elenis Camargo

- monthly P&I $322 (3.65% interest)

- monthly cash flow: $550

- ROI (CoC) 23,5%

- REO 37%

While it was not as complicated as a BRRRR, this deal was not uncomplicated, I have a ton of respect for everyone who is doing BRRRR. I ran into issues like a huge delay in financing (COVID related) and almost lost this deal, someone broke into my property right after I closed, a new AC broke down and the story goes on. Definitely got my feet wet with this one.

But nevertheless, I'm hoping to be able to repeat this and while I have to put in more money than in a BRRRR deal, I believe that it is an amazing strategy for investors who can't devote the time needed to be successful with the "less money down" strategies.

@Shiloh Lundahl @Ronald Rohde just sent a PM to you. Hope to connect next week. 

Thanks for your input @Jaysen Medhurst and @Jack Bobeck.

@Jack Bobeck so you are saying that I should first rent it in a traditional way and then see if those tenants want to switch to a lease to buy? You have a good thought to use property management firms to find the right person, I'm kind of worried to ask my property manager if he would do that for me but then just place the renter and not manage it. Not sure if he would do that but I could try. And also, is this really a big problem if the lease runs out and the renter can't or doesn't want to buy it? If you structure the deal correctly as mentioned in the article and make it clear that the option fee and the rent payments are not refundable, I can just have the renter move out and repeat what I did with a new LO? (in reality, the tenant might, of course, try to get the fee back and might start a legal process, but by being absolutely transparent upfront and structuring the deals accordingly, it not be the case)

@Jaysen Medhurst what exactly do you mean with vacancy issues? Don't I have an even higher vacancy risk with regular tenants? In regards to CapEx, I agree I wouldn't completely take them out from my numbers for sure. They will most likely be lower though as you deal with a tenant who is a potential buyer, so you can negotiate for them to take care of the property much better. I would not expect them to pay for a new roof but if something small happens I would expect them to deal with it instead of paying out of my own pocket.