All Forum Posts by: Jonathan Oh

#2. Another concern you should add to #1 is the fact that this is your first flip and one mistake can set back all your hard work of paying down current mortgage. With #2, your rent is almost reduced in half. With equity you pull out, you can buy up couple rentals that provide even more income. If you're looking to flip, why not do a BRRRR?

@Eric Inigo If you invest via turnkeys expect to hold it for 5+ years at least. Also, do not strictly chase cash flow, and evaluate the deal as a whole - the numbers, the management, and the location. Make sure all 3 are good. In-house management provided by tk companies are usually not the best. The numbers may look good on the website, but reality may be starkly different if you end up in a bad neighborhood. Hope this helps.

@Kari Morales Connect with other investors and see who they worked with. Ask the companies for referrals. Always do a 3rd party inspection and appraisal. And make sure you connect with a good property manager. But I would also say to put more focus on the deals. Turnkey companies may help you along the way, but its your investment. It's on you to make sure you invest in the right deals. I see many beginners buying up cheap properties because their turnkey provided said it was a great cash flowing property. Only to find out that yes its has great cash flow *on paper*, but its also located in an area that lacks quality, long-term tenants who won't skip rent 3 months into the lease. Hope this helps. 

As a rule of thumb, try to stick to markets with growing population, diverse economy, low unemployment rate, and a affordable housing market. This will likely limit most of your options to the midwest. But what is just as important is surrounding yourself with a good local team. Hope this helps.

@Andrew Coulter
Probably because they have gotten familiar with the market and have built contacts they can rely on. Diversification is good, but don't think that 10 properties in 10 different markets is better than 10 properties in one market. I would prefer the latter because you have one property manager to worry about. Also, if you just have 1 property, you are low priority to the PM. Losing 1 property under management isn't a big deal. Losing 10 is a different story. Hope this helps.

@Aj Parikh
Congrats on your first investment. Only time will tell whether this was a good investment or not. But at least you are taking a step. Most people don't even get to that point. 

@Kenny Kim One of my rentals was built in 1905. Everything was gutted out and replaced. But it still comes with more maintenance than a brand new build would. If you're buying turnkeys in the midwest, theres a good chance you're going to get older homes because those are the neighborhoods where deals can be found. If you're lucky, you might get something newer, but obviously with a much higher price.

@Devin Elfers Glad to see you start on your REI journey. Unlike many of us in the coastal cities, you live in a affordable market with deals still to be found. Consider yourself lucky!

@Sebastian Bock Welcome to BP! You'll find a wealth of information and a great crowd on this platform. 

@Diane Tycangco Turnkeys are market price and sometimes more. And you need multiple turnkeys to make money. Too few then one turnover can basically wipe out your cashflow.