All Forum Posts by: Jonathan Oh

@Robin Gravlin I invested in turnkeys and helped others get started as well. What I found is that while the company reputation is definitely important, you should also look around and find the best deal for you. I have seen people stick with just one provider and don't consider deals from other providers. Do your DD on each deal.

@Account Closed I have many colleagues who BRRRR and do it remotely. They are successful and I believe anyone can do it with the right connections. But you will lose time and take more risks with BRRRR. Most turnkey investors invest because they are looking for a place to stash their cash. They see smaller yields, but they are OK with it because it comes with the convenience and the ability to focus on their career and extracurriculars. There are many pros and cons to both that you need to consider. I buy turnkeys as well so if you need some help feel free to reach out to me. Good luck!

It's simple. Not everyone has the time or interest to pull off anything involving rehab especially from a different state. I'm all for people to dive in and learn the ropes, but there's a whole another world where people don't mind paying a little more to invest more passively.

@Eric Lopez There are people investing turnkey in St Louis as well. Why don't you look for properties there? If your a PM, you have a huge advantage of knowing what areas rent and what areas to stay away from. If I were you I would take advantage of your knowledge and connections in St Louis and invest in your backyard.

 That would be a question for the guys actually working on the algorithm. But my guess would be prob not.

AI technology. Just like how our phones can now recognize our face to someone else. Quite an awesome world we live in now.

It really depends on the data available. For example, say an agent puts a listing on MLS and provides new photos and features such as remodeled kitchen, new roof, finished basement etc. That will be taken into consideration. Obviously, the estimate will be a little more accurate for that property vs one where nothing is available except the info you mentioned.

@Yulyana Karpava I work at Zillow and love the company, but I will tell you that even I don't take the Zestimate seriously - especially when it comes to turnkey. Keep in mind, the tk you're looking at could have been bought and sold off-market. Zillow does not know the extent of rehab that has gone into the property. One of my turnkeys appraised at $92k, but was valued significantly less on Zillow. It's been a great investment so far. Instead of relying on Zillow or other online platforms, order a proper appraisal. Rely on actual professionals that physical see the property rather than some algorithm that doesn't have the full picture.

@Scott Doyen I personally wouldn't do that. First off, unless the market heats up even more, you won't be building much equity. You'll be mostly paying interest in the beginning. Secondly, when you leave the house, it will likely be more of a liability than asset. Not only will you have negative cashflow, but what happens if you have to evict a tenant? Keep in mind, CA is NOT a LL friendly state. Also, are you going to be doing any work to it? If not, keep in mind you'll have to start setting aside even more money for maintenance/capex/etc.

Think about the alternative - Instead of buying 1 350k house which prob won't make you much money, you can get 3 100k houses in solid B class areas with strong rental demand, that cashflows. I think you know where majority of BP members stands on your question :)

I am assuming you are in your early to mid 20s. If that is so, definitely not option 3. Time is on your side, and you'll want to take advantage of current low interest rates. If you plan on selling your primary residence in 3 years, it may not be worth it. A general rule of thumb is that you should stay at least 3 years when considering owning vs renting. But also consider the fact that we are near the current business cycle. No one can say we will be in a depressed market in 3 years, but based on general sentiment from economists there is a good chance. If that happens, you'll be stuck in that property and possibly not see the equity you think you will. I am not here to make the decision for you, but if I were you I would start building a portfolio now rather than later. Turnkey is a good place to start, but it is not the only option out there. Every investment has its pros and cons. I buy turnkey so let me know if you need help here. Whatever you end up doing, just do your DD. GL!