All Forum Posts by: Jared Smith

You open yourself to much more risk in not being able to finance out of it and being stuck with hard money and those fees/penalties. If you math it out it is probably unlikely that you will be cash flowing on a property that you are using 100% leverage on from a turnkey company. We would never recommend that for our clients.

@Giovanni Magana welcome to BP! We work with lots of clients from both coasts, but especially from CA, helping them find investment properties with residents in place under 2 year leases from day 1! When you are ready and want to learn more about the Mid-South/Mid-west markets that we are in I would love to share more details with you on a call. Best of luck on your real estate future, it's been a fun adventure for me!

-Jared

There are several basic rules for a 1031 for identifying properties, timelines, and uses. 
I won't just write them all here but I highly recommend contacting a qualified 1031 intermediary to walk you through the process. I have used George and Bill at www.1031esi.com multiple times. When I was in your exact situation looking for help, they were the only ones that provided solid answers and walked my wife and I through the full transaction.

We help clients in your exact situation all the time but we are located in the South/Mid-South and only deal with SFRs. If you don't find what you are looking for near your area, we would be happy to help.

You can hear more about what we do here on this BP podcast: 

Best of luck!

@Mattin Hosh I work with clients that invest in the Memphis and several other markets in the South. I'd be happy to provide an overview of what our clients are experiencing and would ever offer to get you in touch with some recent clients to discuss their experience working with us. Your first step is definitely learning about the markets you are interested in and figuring our what your desired end state / goal is that you are hoping to achieve through real estate. This will likely change through your real estate journey, but I always recommend starting with something in mind.

@Jeanette Land I work with clients in 11 markets across TX, OK, MO, TN, AR, and AL finding them turnkey properties for their portfolios. Something that is increasingly important to those clients is being cash flow positive from day 1 and this is what we deliver. If you ever want to have a discussion to explore your options or ask any questions about the concerns you mentioned, I would be happy to help! 

It is increasingly more difficult to pay of even one mortgage when you are cashflow negative, let alone multiple. I love that these homes are in class A neighborhoods, I have seen this strategy work out for investors before but they were at least cashflow neutral. 

Do you currently have equity in any of those homes? How long are the leases? Do they take up much time each month? Would you be able to sell any of them if you needed to? Using these questions to help frame a secondary exit strategy for you? If you end up having a vacancy with no cash flow, it hurts much more than when you are able to offset with cashflow from your other properties.

I would recommend seeing if you are able to diversify a bit with some local or out of state properties that do cashflow some, even after Property Management, that way you could start to support these homes. Without knowing any of your financial position of your work or side hustles it is hard to give you exact advice because you may be able to carry these homes until they are paid off and in that case they would provide solid returns, but there are likely better real estate investments out there.  

Hope that helps. Reach out if you have any questions! 

Happy New Year!

@Jay Hinrichs great points here and I think you are spot on. I am now seeing how the REI Nation process works from start to finish and as someone who also owns my own rental portfolio here in Memphis in what I consider solid neighborhoods but also used leverage to purchase, sometimes your cashflow gets evaporated due to CAPEX and there isn't always rhyme or reason to it. I am confident that the 3 water heaters and 3 HVAC systems I put in place since Summer 2024 will give me some peace of mind in 2025 and beyond... for those properties. However, I find the real value in the longer term appreciation that shows up in 5-10 years of the daily grind of rental properties. Happy New Year Everyone!

@John Bowens, I need to do this with my Equity Trust SDIRA. The returned interest from a loan is stacking up in the account and I need to take some action to get it moving again. Thanks for the reminder!

@Kevin Lee congratulations on getting started! #1 is the scary one!