All Forum Posts by: Joe Maris

What are the most reliable methods/resources for determining vacancy rates? Is there a good method/resource for determining vacancy rates for specific types of properties, specific locations, etc.? I found the following site that shows national and state-by-state statistics for vacancy. Please share the resources and methods you recommend. 

Rental Vacancy Rate [2022]: National Trends & Rates by City (ipropertymanagement.com)

What are the most reliable methods/resources for determining vacancy rates? Is there a good method/resource for determining vacancy rates for specific types of properties, specific locations, etc.? I found the following site that shows national and state-by-state statistics for vacancy. Please share the resources and methods you recommend. 

Rental Vacancy Rate [2022]: National Trends & Rates by City (ipropertymanagement.com)

Excellent! I'll keep my fingers crossed that the market keeps on going. If you wouldn't mind, I might send you a PM sometime to connect. I am considering RTR, so I appreciate talking with investors that are working with them. Have a good day!

Thanks. Good info. Did you go with conventional financing? 20 or 25% down? I'm interested in new build also, but need to complete my research of TK companies. Congrats!

Thanks @Joseph Schweizer. That's helpful. I've already spoken with some other TK companies. The companies I have spoken with all have their own property management group. Obviously they are benefitting from PM as well. I could be wrong, but it seems good to have the same company that rehabbed the property also managing it. No finger pointing between two agencies. It also seems they would be motivated to do an excellent job of rehab (good materials and methods) so that property management is easier. Maybe not; it's just an assumption on my part. Do you mind sharing the name of your property management company and a list of their fee's (monthly fee, repair rates, cost to find tenants, lease renewal, etc.)? If you prefer not to post here, I understand. Please feel free to PM me, or I can share my email address if that's preferred. Reading through all of the posts i can see you have been very active and helpful to many people. Thank you. I will likely have more questions as I consider the opportunity, and input from actual investors such as you is valuable. Much appreciated. 

Congrats on a successful start. I'm interested in the property management side of the business. How passive is the income? How often does your PM update you? Do you get unexpected expenses/invoices? After making the purchase, having a good PM is critical or it becomes active (not passive) income. I see Erik indicated they help connect you with a PM in the area. What if that relationship breaks down, though, and 3 years after purchase you need a different PM? BTW - I have an initial call setup with RTR next week.

I've read through past forum posts regarding turnkey (TK) and did not find the specific info I'm looking for. From what little I know, TK investing requires a three-pronged analysis; 

1) Analysis of the TK provider (company), 

2) Analysis of the market you intend/desire to invest in, and 

3) Analysis of the deal (the TK property) 

Analysis of the TK provider appears to be most important (that's why it's number one on my list). The TK provide must be experienced, trustworthy, transparent in their communication and offers, and provide quality work at a fair price. What's a fair price? Since TK doesn't offer much (if any) equity in the investment, the price must be below expenses such that the investor gets the expected cash flow. The question is; how do you evaluate TK companies to find one that fits these qualities? They all claim to be fair, honest and make money for their investors. What does an investor look for that differentiates the pretenders from the contenders? 

Analysis of the market is the second most important (at least to me) for a number of reasons. To be clear, I'm no asking if an investor should consider the crime rate. I'm asking where does the investor get crime statistics for specific neighborhoods in a City? Where does an investor learn if a certain area of town is "hot" for rentals? I'm wondering how the investor analyzes a specific market (what factors make a good or bad market) and where to get the info for the analyses. Also, shouldn't market analysis be done by the TK provider as well? 

Once a TK company and rental market are found, each deal must be analyzed. Appreciation is always important in RE, but in TK investing the forced appreciation has been consumed by the TK company and it will be years (in general) before the investor can realize market appreciation. It seems to me, then, that cash flow is king. So the key question is, how do you analyze the TK deal? There are numerous resources for analyzing BRRRR and other RE investment deals, but I haven't seen many for TK. To be clear, I'm asking about what needs to be analyzed as well as what the specific resources for doing the analyses of TK deals? For example, if you say it's important to determine cash flow, then point to some tools for doing the cash flow analyses on TK deals. There are RE calculators for rental properties, but are there calculators for TK properties?

The hope is this discussion will be educational/helpful for all TK investors, but also be practical for those seeking the tools and resources to get into TK investing. 

Thanks for sharing your expertise. Yes, @Willem Botha has been very helpful. I won't go into a lot of details, but I'll give some background for clarification. I will be 60 in a few months. The large majority of my retirement is tied to the stock market. That's been good for many years. As I near retirement, though, I want to divest into another area to create an additional income stream not directly effected by market volatility. I don't have years of time learn multiple strategies, and I cannot risk my retirement on mistakes while learning. That's why I think TK investing is the best (and quickest) path forward. If I can partner with a trusted TK company, I hope to create an income stream with RE investing.  

For me cash flow is king. Yes, I want appreciation, too, but I don't have decades of time to solely rely on appreciation. I plan to retire early if possible, and the expected cash flow portfolio will be a big part of my retirement income. I believe the following factors are critical to this plan - 1) A trusted TK company doing quality work, 2) financing with rates and terms that won't damage cash flow potential, 3) finding and understanding good rental markets, and 4) learning to analyze TK deals for cash flow and acceptability within my criteria. I know there are many other factors that will influence success, but I think these 4 factors are most important. 

I'm certainly interested in your thoughts and appreciate any insight you can offer. If you have input on any of the 4 factors for success (i.e., recommend specific TK companies, know of good financing sources, have methods for evaluating proformas and deals, etc.) I am very appreciative of your guidance. I don't expect you to post sensitive info in this format. I will gladly connect with you directly off this page if you want to share or discuss specific info. If you prefer to comment in general, that is appreciated as well. TIA

Thanks for your reply and the additional info. Just a couple easy questions about your criteria for selecting a property. What is a zip code "accepted" list? Does that mean the property is within one of the zip codes you accept, or something else? Also where do you get crime rate info for specific areas? For example, I can easily find crime rates for Dallas, TX, but what about specific neighborhoods or areas of town? Thanks again for your comments. I enjoy learning from more experienced investors. 

Appreciate your sharing real-world experience. I'm currently looking at TK with a specific company. I am interested in how you evaluate an investment property for cash flow, appreciation, etc. Do you trust the proforma from the TK company, or have other processes. From what I've seen properties get snatched up quickly, so when the opportunity is presented a very quick (and reliable) evaluation is necessary.