All Forum Posts by: Parker Robertson

 Hey Daniele, I have not gone with any turnkey company. I felt like none of them were a great fit for me. That may certainly change in the future, but for now I will be doing it on my own.

Hey Sean,

Thanks for the comment. My current residence is not a duplex, but a SFH where I have been renting out the extra rooms. How would that affect my Section 121 eligibility?

Thanks again,
Parker

 Thanks for the input, Jake! I have set up multiple discovery calls set up with some real estate focused CPA's to get some more guidance.

Hello,

I am hoping to get some input from the BP community on my current situation.

I purchased my primary residence 04/2022 and have been house hacking it since. My plan was to live in this property and save up a down payment for property #2, move to property #2 and house hack while making property #1 a full rental.

Property #1 has a 4.25% interest rate and has also appreciated significantly (online estimates say $25,000-$40,000 in appreciation) which is a great problem to have. Unfortunately, property taxes and HOA fees have also risen, while rental rates for the property have not kept up. Because of this, my property will no longer cashflow if rented for the estimated rate assuming I save for vacancy, maintenance, etc. If I managed the property myself and did not pay myself, I would come close to breaking even. This wouldn't be the end of the world since I could use the losses to offset my W2 income, but I would need to refer to a CPA to see if that would really be worth it.

I have a couple of options as I see it. Use the home improvement money I have set aside (~$12,00) to either 1) redo the bathrooms/kitchen to hopefully command higher rent or 2) perform preventative maintenance and lower my maintenance budget per month. These would hopefully allow me to keep the property which is my ideal situation.

Additionally, I could wait until April this year since it will be 2 years as primary residence and then sell/1031 into a new property that would hopefully make a better long term rental while avoiding capital gains tax.

Which option sounds like the better plan? Is there another strategy I haven't considered? Let me know your thoughts!

 Thanks I’ll look into that. This is why I love this forum! 

My short term objective is to get my feet wet with my first investment property to learn the ropes while also having my hand held a little bit. I still have my W2 that I’m  not ready to walk away from since it is funding my real estate investments. That is why I’m willing to get a “base hit” from RTR or Norada. I don’t plan to go through the turnkey services as my long term strategy. 

That being said, I’m open to suggestions and input from more experienced investors. 

I don't necessarily mind that they are making a profit off of me; in fact, I expect it. I am willing to pay to leverage their connections, especially considering I am looking for my first out-of-state deal. My biggest aim is to ensure that my long-term success aligns with whoever I invest with's long-term success instead of making their money on the upfront sale and leaving me on my own. 

I imagine there is not much of a relationship with the turnkey service after the sale and I would deal with the PM and Loan company directly. 

Also, I'm not familiar with their 2-year "teaser" product. Could you provide more info? What do you mean when you say they will likely bid on the balloon options in 2 years?

Typically, I also avoid paid education because there is so much free content. I'm considering this one because it advertises help with tax structuring and LLC advice which is appealing to me. I also like the refund of course.

I may be misremembering this next part, but I recall one of the RTR podcast episodes where he mentions that RTR keeps all the “10’s” and gives the “9’s, 8’s, and 7’s” to the customers. With the amount of support they provide I am not against settling for an 8/10 deal. 

At the end of the day, it’s a big decision choosing who to invest with, but the academy is very enticing.  

Rent to Retirment (RTR) has very recently announced the RTR academy that investors can join for a one time payment to learn everything about investing. Additionally, the majority of the price is refunded if you invest with RTR. Originally, the entire price of the academy would be refunded if you invested with RTR, but from what I can tell that has now dropped from 100% to only 90% refund (not sure why they dropped it so shortly after launching). And only if you invest in the following 6 months after you join. 

The numbers make this seem like an amazing deal, but I want to make sure it’s not just a way to grab my business and that it will actually educate me and provide long term value. Has anyone joined the academy that would be willing to share their experiences? 

Has anyone had any experience using a turnkey investment service they would recommend?

I've reviewed a few myself (Norada, Rent2retirement, RealWealth, etc.), but since they all promise the same thing - passive cash flow - it is hard to determine which is the best of the bunch. 

I'm looking for any suggestions, recommendations, or advice that could point me in the right direction. Thanks in advance!