All Forum Posts by: Luis Rolando

Hi Lena, here's my perspective for whatever it is worth.  I also live in CA and invest out of state.  I vetted Turnkey companies until I found a couple that met my expectations and are getting great reviews from their customers. Some of the things I looked for are: 

1.) Location/Neighborhoods where the properties are located.  I look for up and coming neighborhoods in cities that have strong economies and are not heavily impacted by a downturn.

2.) Quality of rehab on the property.  There is a balance here.  I don't want top notch luxury features in a rental.  I also don't want crappy work.  I want quality work that attracts tenants and minimizes issues.  Some turnkey companies even give you a 12 month warranty if anything goes wrong with the house.  The idea is to minimize issues that will cost you time and money.

3.) When things go south and it is their fault, how do they respond?  This is more difficult to assess but you can get a sense from reading reviews about the companies.  I don't look for perfection.  Mistakes will happen but if it is their fault, I want them to own it and address it. High level of customer service is what I expect.

When you buy from a Turnkey company, you will pay a bit more for the property and then if they manage it for you, that's 10% off the top.  But .... my point is that I don't look at it as 'leaving money on the table'.  I value my time and peace of mind.  I try to minimize the risk ahead of the purchase and, if that means I pay a little more for the property and for good management, it is worth it to me.  

Of course, that's my personal approach to this - not everyone is comfortable with this approach or have the same risk tolerance.  I hope this helps.  Good luck with your investments.

Luis Rolando

@Dan Engberson I bought in Lancaster and my RV% is 0.78 or so. You might want to look in that area. I’m not super familiar with all of the DFW neighborhoods but I bought in Lancaster and got it rented quickly on a 2 year lease and an rent increase in the 2nd year. Hope it helps.

@Ron Singh yes. looking for both but multi-family limited to 2-4 units. Thanks

My 2 cents.  I live in the Bay Area and aside from my home, I simply can't afford to invest in this area, cashflowing or not.  If I could, I would still use a property mgmt. company locally.  Don't want to deal with the day to day.  I instead invested (and plan to continue to) in the Dallas area.  Many West coasters are going there and the economy is solid, appreciations are decent and when the market crashes, you won't get hit as hard as in California, for example.  You can find decent cash flowing rentals there.  My aim is to buy several properties since the cost makes it affordable for an investor.  I am also looking in other cities in middle America.   Hope it helps.

Hi Joe,

congratulations on your quickly approaching retirement from the police force (thank you for your service) and the clarity of your goals and what you want to do. I am relatively new to BP and to RE investing. I was able, however, to buy my first rental SFH property in Dallas last year and I am looking to buy 2 or more in 2020. My long term goal is to invest heavily in RE (Buy & Hold) over the next 5-7 years so I can retire comfortably. Unlike you, I am in my late 50s, working in Silicon Valley for the past 35 years and I just started a new job which I hope that it will be my last. It's a great job with great pay and I am saving a lot so I can invest in R.E. I would love to connect with you about the OH market and your thoughts there. I don't invest in California so I am always exploring the markets on other areas. Thanks for sharing.

Luis Rolando

Hi Sergei, congrats.   Where is your multi-family located?  What is your cash flow like approx?