All Forum Posts by: Philippe Schulligen

@Jeff Stansberry I am looking at the Memphis market too. I spoke to an out of state turnkey investor yesterday who specifically recommended to avoid that zip code based on tenant quality, crime, etc.

@Brent Coombs @Mike D'Arrigo Based on your feedback, I realize I made a poor choice of words earlier. By writing "advanced strategy" I really meant that the strategy being discussed here is for more experienced investors. Sorry for the confusion.

@Mike D'Arrigo As a client I am ready to pay a premium for getting equity in a property. In other words, I would be happy with getting 20% equity leaving 5%-10% for the third party. Assuming the third party and the turnkey provider are the same, they can make money on this premium, then managing the property.

FYI, besides the providers mentioned in the thread, I found other turnkey providers offering what I suggest in the first post (turnkey BRRR).

Typically they require to go all in (property purchase + rehab cost) in cash. In most of the cases the properties are C type neighborhoods.

Based on the risks inherent to this strategy (risk of higher rehab cost and lower ARV), it seems to be an advanced investor strategy.

@Larry Fried@Rashard Alomari @Robin Hines I will contact the companies and share back with the community. 

@Brent Coombs @James Wise The idea is to have the turn key provider find a property under market value needed rehab, make the customer pay for the property, then turn key provider coordinates the rehab and make the customer pay for it. There are opportunities of the turnkey provider to make money at each step between economy of scale and charging a premium. 

I think that for a real estate company to charge the full ARV is OK for non investors; for investors the turnkey solution may be less attractive.

Hi BP members,

I am brand new to the real estate investment world, a few posts and my first REIA meeting last week! I am grateful for the opportunity to interact.

From my research so far and based on my personal situation (full time job, living in NYC metro area), the ideal scenario is to find a turnkey offering the BRRRR strategy to their customers. In other words, buying a property way under market value, needing rehab, then rent it out and cash out refinance, and repeat.

I would appreciate if you could share your success stories or words of wisdom.

Thanks.

P.

FYI, I fixed the link to download the file I generated as described in the first post. Sorry for the inconvenience to anyone who tried to download the file.

P.

FYI, I started another thread on of the different states.

Some people mentioned higher taxes and insurance for non-owner occupied properties.

Does this apply to NJ and PA?

@Rafael Norat I just come back from visiting some SFC in Philadelphia today. Do you have tips on PA? Did you invest in Philly?

Hello fellow investors!

I am looking at investing not necessarily in my home state.

Based on the cost of taxes and insurance here are the top 10 most affordable states and worst 5 based on a quick research on the Internet.

Methodology: 

Disclaimer: I am not a statistician.

This ranking looks at taxes and insurance only. 

Sources (not vetted or cross-referenced):

https://www.valuepenguin. com/average-cost-of-homeowners-insurance

https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585/

Assumptions:

1. The average state taxes information are applicable to median state property prices (I think average may be better).

2. The median home price is a relevant factor to compare affordability.

Excel file is available for download here to look at more details.

Please give me a lot of feedback and suggestions.

Please vote for me if you like it this approach!

Philippe