All Forum Posts by: Jonathan Oh

Regarding average worker with 2-3 jobs  - just curious where are you getting this data from? And we certainly do have an issue with consumer debt. Cheap money led to credit card, auto, and student loans rising to unprecedented levels right now. In my circle of friends alone, I have several spending recklessly.

@Xavier Wilson

Do you want to be hands off or on? Hands off - turnkey, Hands on - BRRRR, but you need to start networking and build a strong team in the market that you choose. Connect with agents that work with investors and get on their marketing to get up to date deals. Connect with PMs and ask them which areas are solid for rentals. For financing, you'll probably be looking at conventional financing with 20-25% down. Shop around and ask for referrals.

@Alyssa Dyer

Agreed. I have many colleagues focuses on deals requiring minor rehab and it's been working great for them.

@Brandon Roberts

If you're looking for residential (1-4 units) out of state, you're 2 biggest options are:

1 - Turnkey

2 - DIY BRRRR

Turnkeys are much more straightforward than BRRRR. The potential returns for BRRRR are much higher and people use this strategy to grow their portfolio quickly. Turnkey is a much slower wealth building process, but can be a decent cash flowing machine. Both require DD, but BRRRR will require significantly more capital, risk, and time commitment. If you're looking for something more hands on do BRRRR, if not then turnkey. Keep in mind you will be paying market price for turnkey because the sweat equity is captured by the seller. In BRRRR, you capture the equity yourself. There are pros and cons to both and are meant for different types of investors. I invest in turnkeys so if you need some help there hit me up. Good luck!

@Zack Hellman

Zestimate - Don't rely on these figures - sometimes it's accurate other times it's way off. Try looking at nearby comps of decent homes not fixer uppers.

Rentometer - I never found these to be accurate. I found it a little more accurate to look at rental listings in the area. In fact, I did a quick search for you on that Meadow Forest Dr and saw few rental listings for 3+ beds, 2+ bath homes that are smaller than 1898 sqft. The rents for these ranged from $825-$850. There's a chance you won't get $900, but if you're worried about not even hitting 1% rule, I think you'll be ok.

@Nancy Mascorro

TBH 10k is going to be tough to invest with. You can also look into hard money, but its very competitive these days. Those lenders want track record. Keep getting education and diligently save. Assuming you are not a real estate professional, if you plan on being investor full-time find someday, find a way to break into the industry. If you plan on keeping your current career, find ways to increase your income. One thing that is tough, especially investing out of state is that you typically need money. I personally would not use credit as downpayment if you can't pay that back in a timely manner.

@Jason Lam

If you are concerned primarily with the quality of the home, then first thing you should do is make sure you are working with a reputable turnkey company. Get a 3rd party inspector. Any big issues that come back, you can always negotiate with the seller. Also, get a 3rd party appraisal to make sure you aren't over-paying. I bought turnkeys sight unseen as well and they have been great investments so far. Technology has made doing DD much easier nowadays. 

@JASON CHOI

What is your end goal? If you are looking to expand quickly, turnkeys won't get you there. But if you're just looking for somewhere to place your cash and are ok with lower returns, turnkey is a good route. It seems like you're worried about time commitments with your career and family in which case, turnkeys are also good. I mostly invest in turnkeys, but I have colleagues that also have a ft job with a family and have successfully done brrrr remotely - so it is possible. Also, on PMs I think every investor here had problems and get annoyed by them, but they do take a lot of the grunt work for you. I'm a strong supporter of using REPUTABLE PMs. If you have decent management in place, their fees shouldn't be a deal breaker. And again if you have time commitments you're worried about, hiring a PM should be a no brainer - just make sure you vet them.

@Dwaine Allison Can you provide the name of the property manager? That is absurd. Tenants complaining about lack of response seems to be common with many property management, but if they are not taking care of you're property and not carrying out the maintenance fixes they said they would, you have every right to move on and take your deposit and reserve with you.

@John Collins

I am assuming you have experience selling property so you can just do a FSBO. Just make sure you understand the legalities of selling. If it is turnkey, you can always reach out to turnkey sellers and have them market it for you (they may be able to get higher price for you, but don't take my word for it). There're also other avenues such as Roofstock.com.