All Forum Posts by: Lance Robinson

All - I reached out to @Snehann Kapnadak and am going to help him out.  Nothing is actually "passive" by the way. : )  Also, leverage of buying multiple doesn't exist in TK. Maybe if you purchase a portfolio from an individual investor.

Re: @Mark Ainley - Agreed 100%! The PM company is exactly what you are buying. managing multiple PMs in multiple markets can suck. You could have a bad seed, but the false sense of security/diversity could force you to use a mediocre PM. I wouldn't purchase in a market without a good PM, period.  Even the way they collect rents, pay you, charge fees, etc. can be different and confusing and take a "passive" investment and make it more active than you want.

@Lane Kawaoka and I have talked a bunch before, great person to talk with as well!

What @Phillip Dwyer said is also a great point! Most people that start in turnkey end up veering off to doing their own things IMO. My first 5 units weren't turnkey, then I purchased a bunch of TK in multiple markets, but most of the units I own today aren't turnkey.

@Chris Clothier - Agreed 100%, couldn't have said it better myself! Also a TK provider with a great reputation!

You guys are tough!

I currently rent and own 33 units.  If my landlord told me I couldn't mount my TV, I would be livid! Stop acting like you're on power trips and treat your tenants how you would like to be treated.

@Account Closed Too many people on these forums are debt happy and justify all the "good debt." I just wanted to help provide another way for you to look at this situation : )

@Account Closed Please don't take a HELOC on their house. If something goes wrong and you can't pay it and they default (as there credit says they have a bad history with credit) they will lose their house and you will never repair your relationship with your parents. Is it really worth it?

@Tim Puffer Agreed, 100%! It's just trying to leverage economies of scale and have one person to reach out to when I need to add new insurance, advise me, etc.

@Anthony Lee E-Mail sent.

Hey All - What is the best way to insure everything you own? All rental properties, primary, renters insurance, auto, umbrella, etc? I've been haphazardly adding as I'm going and some carriers have limits like won't insure more than 4 properties so then I move on to the next, but between that and multiple states I don't know how to ensure I get the best bundle for everything I own and ensure the best rates. There are people with way more rental properties than me, how do you handle/deal with that? Thanks Lance

Originally posted by @Luis De La Fuente:

Hello all-

What is the general opinion with regards to paying down debt vs investing in properties?  I will be receiving a bit of cash here in the near term and cannot decide whether to pay off my existing credit card debt or invest in a rental property.

 Pay off the debt.  But you have debt in the first place on CC's so you need to have a behavior change. You should pay off the CC debt and cut the cards up so you never get in to high interest CC debt again.  That will keep you in the middle class. Then have a plan of how to live and save and work towards your goal to invest in real estate.

Good luck.

@Shital Thakkar,

Indy and KC are good investment markets.  The main Texas markets are great though. I wouldn't feel the need to diversify in to those markets. I purchased those properties before I lived in Dallas. If I was you, I would keep buying in Dallas and would maybe look at Houston, San Antonio, and New Braunfels. I personally would wait on Austin right now, too hot. You should definitely stick with the good Texas growth! I have property in Texas also, lower vacancy, better tenants, better appreciation, much better investment. Let me know if you'd like more detail or to chat more, I know my response was fairly generic.

Originally posted by @Roman Gwin:

@rohan...I live in LA like you and have a few sfr's here but also in Indianapolis, Kansas City, Dallas (Mansfield) and Phoenix.  I really like the Indy and KC markets because I bought 4 houses for an avg of $50,000 each and they rent for $800....to me, that's like buying 1 property for $200,000 here in the LA market and getting $3,200 in gross rent...it's literally impossible here.  Indy and KC are top 50 markets with stable populations and employment not tied to one or two large employers.  The property taxes are 3x lower than what I pay in Dallas.  And my insurance is also only $40 a month per unit compared with nearly $100 in Dallas.  Adding in the property management fees for an out of state owner and my Dallas experiment ended 6 years ago.... with that being said, those Dallas properties have finally had some appreciation.  For an LA investor I like Phoenix because it's only an hour flight away, and man, the Landlord rules are 100 times better than LA.  

A 3/2 1700 sq ft SFR worth 2 mil in the bay area and a 3/2 1700 sq ft SFR in Indy worth $100K both have the same HVAC and roof costs. Cap Ex maintenance alone doesn't make the cash flow NEARLY a fair comparison. Looking at risk factors such as the type of tenants, evictions, vacancies, maintenance repairs, how they treat the place, etc. are all risks that aren't factored.

Just adding some more color for those reading this.

PS I own 4 houses in Indy and 2 in KC, so I'm speaking from experience.

Originally posted by @Rohan J.:

Thanks @Kim Younkin - I will check out Columbus.

@Eric P. - I liked what you mentioned until the last sentence :) Looking for areas that have bigger economic engines that can create stable renters and lesser headaches.

If this is your criteria, then I would go with leveraged in Bay area, CA, Los Angeles, CA and NYC, NY. I would start in those markets. I think LA would get you the best bang for your buck right now in the MF space and bay area in the SFR and maybe smaller MF space.

If you don't like those, then I would look to Seattle, WA, Austin, TX, Dallas, TX, Phoenix, AZ, San Antonio, TX, Houston, TX. 

Cities like Cbus are great for cash flow but the population is declining and the economy isn't that great (see declining). Look where billionaires buy properties, that's where I would go.