All Forum Posts by: Jonathan Oh

Anytime!

@David Esteban

First off congrats on taking your first steps. I know it can be a little stressful at first especially with everyone telling you how bad this deal is. But I would have to agree with them just by looking at the price and rent. And I also agree that all those guarantees are red flags. But that doesn't mean all turnkeys are bad investments, it just depends on your goals. Finding your own deals and BRRRRing like a lot of the investors here are doing is the best way to not only accelerate your wealth, but to learn the game. But most of these investors are not airline pilots that live overseas like you do. So luckily for them, they have the option to do the work themselves. For you, I don't think its impossible, but def a lot more difficult. Turnkey is good in that it is a much more hands off and you don't have to stress about contractors running away with your money and managing rehabs from afar. It's bad in that returns are obviously not going to be as great. If you're going to invest in turnkey, your goal should be buy and hold (for a long time). Don't expect to be rolling in dough within a few years. As long as you understand this, I don't see any reason you should stay away from turnkeys. That said, understand the numbers and do you DD very carefully. Assuming that you were seriously considering this deal, I think you may want to read up a little more on underwriting deals. I invest in turnkeys as well, so if you need help feel free to reach out to me.

@Michael Blank

Turnkey is a good option for those who don't have much time to build teams/manage rehabs, and don't want to go through a huge learning curve. If you do have the time, knowledge, and stomach to take some bigger risks, think about doing your own BRRRR. Otherwise, turnkey is good too. Just do your DD thoroughly and be extra careful if you're about to buy dirty cheap properties with high cashflow. In this market, cheap properties are cheap for a reason.

@Brad Clark 

For KC, I like Independence, Raytown, and South KC best. You're looking at areas closer to the city, which I have been told by several agents in the area to avoid unless I really understand the area. Just make sure you have some BOG to help you avoid the bad parts because it can differ block by block. Good luck!

@Stefan D. Awesome! Glad to hear it.

Tbh if you're planning on going turnkey, 15k is probably going to get you just one property. 20% down will get you at most a 75k property. That's not even including closing costs and reserves you should set aside. Be wary of picking up cheap turnkey properties. Couple years ago, they were solid, but nowadays with margins thin, you have to double check the area the properties are in. I try to buy within 25% of median price/sqft of the market to be as close to the mid tier as possible. Again, I'm more on the conservative side and that is what I would tell my clients. Take my comments as a food for thought and don't let me discourage you because I don't fully know your situation. If you need help don't hesitate to hit me up. Good luck!

Plumbing and heating non-operational? I'm assuming your lender required an inspector, so they didn't catch this? They should have tested it and make sure it at least turned on..

@Connor Anderson If 25k is your savings, I'd save up a little more for personal and property emergencies. BRRRR might be bit out of reach because it requires more capital upfront and its very tricky to pull off when you're located on the other side of the country. But if you're confident in your knowledge, skills, network and have access to a good HML, then by all means go for it. I also like house hacking idea. If I didn't have a good living situation, I would do that. Also, know that there are other options such as turnkeys and syndication, but these are passive investments and def has its share of pros and cons. I invest in both so if you have some question on those, feel free to message me.

Hard to fully answer this question without knowing how much capital you're working with. BRRRR prob isn't for you since you want to hire pros to do it. Turnkeys are a great option for you. It's very hands off and you get the benefits of being a direct owner. You might also want to consider syndications, but make sure you vet the sponsor. I have money in both so feel free to message me if you want some more info. Good luck!

@Kenneth Biason 

Hard question to answer without more info about your situation. But I would recommend doing deal requiring smaller rehab or turnkey. Get your feet wet like you said. If you see yourself as becoming a full-time investor, start with a smaller project. Then move to the bigger BRRRRs. Like the BP members above said - you can lose money both ways. I'm all for you learning the ropes, but don't set yourself up for a massive setback by biting more than you can chew. But if you feel confident in your research and team, go for it! Good luck!