All Forum Posts by: Joel Fernandes

@Joel Fernandes I think as long as you are focused on Dallas, you will continue to be frustrated. Dallas doesn't cash flow well because of their high property taxes and insurance rates. Dallas is also not what would be considered a high appreciation market. Currently, Dallas County is seeing 4.6% appreciation which is moderate. Most markets are cooling and appreciation is slowing down. This may not be a good time to invest for appreciation. What's your long term strategy and why is cash flow not important to you?

surprised you didn't look a bit north (about 3.5 hr drive). okc is a pretty good rental market (even currently). additional bonus: no outrageous property taxes like in TX (everything is, after all, bigger in TX).

@Joel Fernandes based on your post from 3 days ago, finding the right property will require more than a few days.  The process of finding a good deal whether it be turnkey or not requires patience and I agree with numerous others that have commented here.   

https://www.biggerpockets.com/forums/12/topics/661...

Many of the recommendations provided are; change markets, change your criteria, persistence, educate yourself more on the process of buying turnkey rentals.

While buying turnkey is easier because it doesn't require as much effort on your part doesn't mean everything that happens during the process is going to be easy.  Turnkey is not easy money there is still work required.

Keep going and if you put in the effort and due your due diligence you'll find the property that works for you.

I do love the nice search tools @ roofstock. I signed up for getting notifications of any listings there. BTW, I am wondering whether roofstock lists each property in their inventory with due diligence, or is it that anybody can easily list there (?). The other TK promoters so far I have been working with all have certain properties that have to meet a bar before they can recommend for investment. I wonder if that's the case with Roofstock too.

@Joel Fernandes You are right that most operators will show you the rosiest numbers and minimize things like capex and vacancies, so at least you are going into it with the right mindset and asking the right financial questions. Keep in mind that it will be harder to cash flow if you are excluding C and some B properties.

For all the due diligence you do on the TK provider and the numbers, the other thing to understand is that ultimately the success of your investment will depend on the tenant placed and the property management. If you have a good tenant that pays every month and stays for 3+ years, then even a marginal-looking deal will be great. But if you have a property that turns over every year or you have a tenant that stops paying mid-lease, then the best looking deal will be a loser/money pit. Do a deep dive on the PM, and don't hesitate to go elsewhere if needed, and make sure you can exit your PM relationship with 30 days notice. With the right PM with deep experience with it, you can make C+ / B- properties work.

Joel check out Roofstock.. they are brokering not only turn key inventory however they have every day sellers as well.

and a good real estate agent in what ever market your interested in.

be cautious in many parts of texas.. Taxs need to be fully understood and soil conditions. and make sure you have great wind insurance as wind and hail damage is real there.

You don't need motivation, you need to find a different market.  All the reasons why you chose DFW market, are also reasons why it isn't a market for you.  Find one that is.

Zillow data or its flips are not creditable. Wall Street is blasting at Z for even getting into such business. Stock value tumbled 50%.

Suggest you work through its local MLS. I don't expect you will find more turn key inventory than described in DFW area or majority of US urbans. With 20% down I expect most SFHs are just break even unless you go to Midwest blue collar neighborhood with low to zero appreciation(factoring in inflation). Unless there is compelling reason to take more risk invest out of the state finding high cash flows, it is easier to leave it in the bank. This is almost the end of the economic growth cycle with little steam left.

You don't need inspiration...you need persistence.  Check out numerous operators and you will have your answers.  Even turnkey (done properly) is not fully passive...particularly in the beginning.  Good luck...just need more time on the job.