All Forum Posts by: Kody Fordyce

North Peak Turnkey Listings

2331 E Gimber St. Indianapolis, IN

Price - $79,900

Rent - $1,050 / Month

Solid cash-on-cash ROI of 15.96%

This Indianapolis property is in a great rental area adjacent to a golf course and boasts solid returns! It has New: vinyl plank flooring, appliances, air conditioner and fresh paint. The roof is less than one year old and the windows have been replaced in the last five years. *Owner pays: power, water and gas for current tenants.

11432 Kennebec St. Detroit MI

GREAT CASH OPPORTUNITY

Price - $58,900

Rent - $875/month

Newer roof, newer windows, updated Pex plumbing, hardwood floors, fireplace in living room, one full and one half bath, double lot, Large formal dining room.

Expected CASH ROI is 10.66%. Post refinance ROI of over 25%.

8441 S Essex Ave., Chicago IL

5 BEDROOM UNIT

Bundled Price* - $120,000

Rent - $1,450/month

This duplex property has been fully renovated from the ground up including: Electrical, plumbing, kitchen and bathrooms. This beautiful remodel is located in a great rental neighborhood looking for the right investor. Great cash-on-cash returns for a single-family home at approximately 10.83%. Approximate value of this property is $150,000.

*Purchased with a least one other Chicago property.

Stacey,

Two things, what is the norm for the neighborhood and How does the rental history look with no central air? If it has a solid rental history and its the norm to have baseboard heat and window ac, you'd be fine to keep it as is. 

Good Luck!

Kody 

Torey,

Initial cost is sometimes a hurdle for investors diving into multi family rental properties. Duplexes (and larger) are nice because it obviously gives you a buffer for vacancies. There are two (or more) times the amount of everything to take in consideration though. If you have the capital, a duplex may be a great way to launch your portfolio. If it is a stretch, start with a well managed, rehabbed single family and work up from there. Regardless, make sure that the property and PM are quality and enjoy!  

Kody 

BRRRR properties are great if you have the cash to complete the project in whole or have access to non-conventional financing. Not all markets or developers can provide such properties. We work with a few that can through acquiring the properties in large quantities and at a discount.

Turnkeys are great if you don't have enough liquid cash to fund the property outright and still allow people to invest in cash flowing rentals and gain 1-4% appreciation annually in most of the midwest markets. It still beats your average IRA. win win.

Erik,

Some of our best returns have been out of Indianapolis for turnkeys and flips. BRRRR does not work in every city as you know for a variety of factors but we are able to achieve them right now in Indie. We are in the same boat with our highly inflated market in Portland but have achieved our rental and flipping goals by working in the Midwest. Most of the good cash-flowing properties that we are seeing For 15-30k down that will cash flow on average $150-350 /mo after "The Big 6" (mortgage, taxes, insurance, vacancy, management, maintenance) have been paid. This is for B+ through C+ neighborhoods. If you are new to out-of-state investing I would really suggest you look into turnkey providers that offer management in house. Fill free to message me if you have any questions.

Kody 

Tony,

I have have seen great opportunities in Kansas City and would absolutely recommend that market. One of our strongest turnkey markets is Indianapolis. Its not uncommon to get 10-15% cash on cash returns and have a good amount of equity built in. One of the benefits to Indianapolis is the fact that they are a large scale operation, have a robust portfolio of cash flowing properties and have management in-house. The 100k price range will probably put you in B to C+ neighborhoods. 

I hope this helps,

Kody 

David,

We work with a turnkey provider in OKC that can provide both single and multi family options. They also take care of all of the management if you chose them to handle it. They are definitely a company we recommend to purchase your turnkey investments. 

Philly has been great for us too. If you have the option to go cash or hard money, you have the option of refi after six months due to the amount of built in equity. At that point you can keep it rolling. We work in several other markets but these two have been very successful for us. Fill free to reach out if you would like to talk more. 

Kody 

@David MIller

@David MIller Depending on whether you are looking at a cash purchase or finance I would point you towards Philly or OKC. Philadelphia is one of the last markets that we currently invest in that still has the option to do BRRRR's in (Cash or Hard Money). Most of their single family rentals are in the 80-120k that will put you in a B to C range neighborhood. After 6 months of seasoning you can typically cash out. Their timeline is about 120 days to get one spooled up.

Oklahoma City is another option for more of the turnkey method. Similar prices to Philly but you would be able to go traditional financing or Cash. Both of these are stable rental markets. 

Hope this helps, Fill free to reach out if you have any other questions.

Kody 

Joshua,

I live in Portland and have run into the same issues as you in Boulder. That is one of the main reasons I have mostly transitioned heavily to the Midwest ( Indianapolis, Oklahoma City, Kansas City, Jacksonville MS etc...). As far as  turnkeys go, I would really recommend Oklahoma City, Philadelphia or Kansas City. For 20-30k down that will cash flow on average $300-350 /mo after "The Big 6" (mortgage, taxes, insurance, vacancy, management, maintenance) have been paid. This is for B+ through C+ neighborhoods. We have also found as a company to only work with companies that have everything in house ( acquisition, contractors and management), I emphasize Management because that is crucial, as soon as they send it out third, it can lead to headaches. Please fill free to message me or call me if you have any questions.

Kody 

@Phil T,

Thats great that you have turnkeys as a goal. As you know with our property prices in Washington and Oregon make cash flow challenging but not impossible. Out of state management is pretty much on par with West coast at 9-10%. I would highly encourage you to go with a developer that can provide you the property and management all in house. That will help minimize a lot of headaches as they are already very familiar with the properties. I would also highly suggest that you visit the prospective developer, walk through their properties, see their work and get to know them on a face to face basis. Any developer worth their salt will gladly show you around. Fill free to reach out if you have any questions. 

Best of luck,

Kody 

@Phil T.undefined