All Forum Posts by: Lance Robinson

@Joseph Brown We side messaged, but the one property that was underperforming is what I was referring to. I sold that. onea few years ago and kept the winners.

I'm selling 2 of my properties in Indy now if anyone is interested in checking them out on the marketplace:

https://www.biggerpockets.com/real-estate-listings/indy-premium-turnkey-sfr-for-sale

https://www.biggerpockets.com/real-estate-listings/indy-premium-turnkey-sfr-for-sale-2

2 pronged answer for me.

1 - 6 of my 9 SFR's are paid off.

2 - If I make zero in rent, I can last 3 years between personal expenses & payouts on mortgages, taxes, & insurance and be fine.

I have no money in the market, just cash and real estate. I made the decision to pay down instead of buy more, against the advice of Bigger Pockets, and I'm sure glad I did!

CC @Jay Hinrichs

 Who helped mentor me through this strategy ; ) Appreciate all the insight over the years, Jay!

@Ali Boone I can share or you can share, just let me know, but I definitely don't mind jumping in and sharing as an unbiased 3rd party and can help answer Qs as well, let me know or drop me a message. My only qualm is that turnkeys are harder to come by than 5 years ago - 5 years ago I thought the market was too hot, but look at it now! haha

@Brian Formulak It's definitely interesting, I've owned them for a while now so there is definitely some fluctuation, but if I went back over the entire time of owning them, all but one turnkey I've purchased have been great and over 10% CoC.

@Lionel Li 100%! I'm still buying so the numbers still work out! I'll keep posting it since I'm not as active on here as I used to be, glad I can still add value somehow.

I posted my 2016 Turnkey results here: https://www.biggerpockets.com/forums/311/topics/408117-my-turnkey-portfolio

And my 2017 results here: https://www.biggerpockets.com/forums/522/topics/526661-yearly-update-my-turnkey-portfolio-2017

I forgot to do one for 2018, I still invest a bunch, but just buy and hold properties now, not as focused on Real Estate as I used to be, other than as a low touch investment vehicle.

I own 5 total TK properties still, 4 in Indianapolis and 1 in Kansas City, as well as a few other properties, some I will highlight here just so you can see.

All of them were purchased with 70-75% LTV.

***Indianapolis properties - I bought ALL of these properties in mid - 2015, at the end of 2017 I did a cash out refi and the property values had gone up about 25% across the board in appreciation. That roughly equates to what I had down + closing costs in to buy these properties! I hear a lot about turnkey and appreciation - BUY IN A NEIGHBORHOODS that are close to the median house price!

-From then to today, the properties are probably up another 20%. All below properties are SFR's.

Cash on Cash returns (all based off of initial money down)

Turnkey Property A - Bought in 2015 - 1%

Turnkey Property B - Bought in 2015 - 18%

Turnkey Property C - Bought in 2015 - 9%

Turnkey Property D - Bought in 2015 - 33%

Blended CoC - 15%

Non-Turnkey Property E - Bought in 2018 - (-14%)

Non-Turnkey Property F - Bought in 2018 - 8%

Non-Turnkey Property G - Bought in 2018 - 21%

Kansas City Turnkey Property H - Bought in 2016 - 14%

Total Blended CoC between all properties: 12%

IRR - I can't do IRR as I used to since I've been paying properties off/down and it's more work than I care to do, because it doesn't matter to me that much.

The big takeaway above is to see how Turnkey's are performing almost 5 years after purchasing them. I couldn't be happier!

Now, I work with an agent as turnkeys have come harder to find and come by. I am in escrow purchasing another property in Indianapolis now, most of my properties are paid off now, and I plan on just paying down more from here and lowering my risk. In the future, I plan to sell my non-Indy properties (I own others not listed here) and just focus on Indy, I love my PM and feet on the street, to me, that is the most important thing.

Disclaimers from previous posts:

Turnkey isn't exactly TURNKEY and PASSIVE like everyone thinks. Due diligence is really important and it still takes some tracking and staying on the PM to make sure everything is done properly. There is NOTHING more important than your feet in the street when buying turnkey and the PM you use.

And please, don't try to get rich quick, slow and steady is the best way to do it, don't get burned on a D grade property from across the US that you bought for $40K and rents for $700/month and think you won't have issues and will become a millionare over night.

If any property or TK specific questions, please ask away!

@Ken Musial this has been my experience too, I revisit this every couple of years and it’s sooo time consuming its barely worth the effort. But I will go through this again and report back my findings.

@Jay Hinrichs thanks, that’s good advice. I’ve talked to a couple brokers in the past, but they were never better than working direct with the companies: Nationwide, State Farm, etc (most I have are with those two)

Any brokers that you could recommend? Maybe on this forum?

Thanks!

Thought I'd pull @Jay Hinrichs into this conversation to kick it off! : )

Hey all -

What is the best way to insure many SFR's and take advantage of economies of scale?

I have multiple different providers and own many different properties in a few states. One of my insurers will only do 4 properties, and others don't seem to give you a better deal for having many. Is there a best practice on how to insure many properties and leverage that for the best possible rates?

Thanks!
Lance