All Forum Posts by: Johnny Wolff

@Gabriel Harper - Cool idea for sure!

There a few companies that are using this model (https://www.doorstead.com/) are the main example I'm aware of.

Coliving companies do this as well a majority of the time (Bungalow, Hubhaus etc.).  Definitely reduces the risk for landlords.  We also do this at my company (HomeRoom) - the biggest pushback question we get is, "what happens if you go out of business?"  If you can answer that question well it will help you quite a bit if you decide to move forward with this.

Killer post @Snehann Kapnadak!

1)  Really think this is the MOST important piece that I missed as an early RE investor.  Appreciation is powerful.  Give your self a chance to get some.  Your net worth will thank you.

2)  Curious why you didn't go with a 15% down loan for this purchase?  We work with a number of local lenders in KC that offer those conventional loans.

3)  Think this is an interesting thought.  Turnkey companies have to make money somehow.  They area business and they have the staff to pay, need to be fairly compensated for their efforts for putting this all together (its a ton of work).   Negotiate hard, sure.  But getting overly aggressive (leaving .01 profit) kills deals and won't build relationships.  The building that relationship with locals is really how you get good deals on a recurring basis - just something to keep in mind.

Bonus) Would require more down - if it's between 15% down on an SFR and 25% on a duplex I probably lean towards the former.

Really great stuff man - thanks for sharing in such a complete way.  Very helpful.

I don't - but I'm very jealous of the awesome technology platform they've built.  There are a lot of advantages from working with VC backed startups - a huge one is they aren't as concerned about profitability as most other companies (free stuff!).

Do think a local turnkey provider that manages its properties in-house does have some advantages in terms of local knowledge and expertise.  But at the end of the day, you need to pick the market, house, and neighborhood that you feel the best about, out of all the available options.  That can be had through RoofStock or elsewhere.

@Ryan Huffman

My PM company charges a flat $55/hr for work and +10% on materials.  Covers our overhead and gives them a little on top.  Allows them to do light bulbs for like $7 as long as its part of a larger job.  Based on what you've shared, I'd start looking for a new PM company immediately.  Some expensive turns are unavoidable (they are much more common in "high yield / high cash-flow" areas), but an above-average PM will keep them few and far between.

A few different reasons.

1)  https://propy.com/blog/the-rise-of-super-commuters-in-the-bay-area/.  My dad did this for 10 years.
2)  https://www.theguardian.com/cities/2019/jul/02/sacramento-california-bay-area-gentrification-rent

Not sure I see folks from the bay migrating en masse to Fresno.

Also - do think you can plug in an appreciation number based on the last 3-year average to create a reasonable variable for your models.  Or if all else fails, just use the historical inflation numbers from the last 3-years.

https://www.zillow.com/fresno-ca/home-values/
https://www.zillow.com/sacramento-ca/home-values/

Anyways - think Fresno sounds good too.  Best of luck :)



 

Very interesting!  The no-code options seem to expand every day!  We are scaling pretty quickly and we're using Buildium currently.  We like it, but do feel quite a bit of pain around what you're talking about...our processes have to revolve around Buildium, not the other way around.  We're currently, slowing pulling some of the functionality out of Buildium and into our own native environment.

Interesting - first I've heard of the software.  How does it compare to some of the mid-tier options (Builidum / Appfolio) in terms of the number of features? 

Nice to have offices close by...just in case :)

Case by case for me - but I tend to keep rent static for the really great tenants of the units that I self manage.  If a tenant does their own repairs (and has the experience to do it right) - then I never ever change it.

@Naga Avinash Raya - hard for me to think that anything is better than a local house hack if you have that option available.

1)  You already know the area - and already have an intuitive knowledge of the parts of town that are up and coming

2)  You might be eligible for down payment assistance (definitely research this)

3)  What better way to learn property management (and why you want to outsource it as your RE empire grows) than literally living in the home you're managing

4) Leverage - when your leverage is 27 to 1 like it is with an FHA loan - your ROI numbers have insane upside potential with mild appreciation

Anyways - there are some solid turnkey companies out there - but I have trouble imagining any of them could touch the house hack option return-wise for your first property.  Definitely jump as soon as you can.  You aren't going to get a perfect deal on your first one (or even your 19th home), regardless of how long you take.  Take the leap - you won't regret it.