All Forum Posts by: Steve Olson

Hi @Gen Young, nice to meet you! There's not a 100% right answer here. I've personally done BRRR, turnkey, multi fam, and fix and flip. They all have their pros and cons. It depends on what you want your capital to do...generate income now or grow over the long term. And it depends on how much time you have, what you know, and WHO you know. I currently work in the brrr strategy in my own market, out of state turnkey, and new construction multi fam. If you'd like to chat sometime feel free to send me a colleague request and I'd be happy to go through the various pros and cons with you. Good luck!

You got it @Mike Ruangutai!  Will have it over soon. 

Hi @Mike Ruangutai and welcome to BP!  I wish you the best of luck as you start investing!  One piece of advice on out of state turnkey investing: independently confirm the market rent for the property you're looking to buy.  While annoying, bad managers can be fired.  Bad rehabs can be dealt with.  But buying in a bad area where the rents aren't what you originally thought can't be fixed.  I have a guide to investing in turnkey I can send you if you'd like to connect sometime.  Take care!

Hi @Wesley Duvall, I understand where you're coming from on this. You're probably going to have to go the wholesaler route, or maybe even become your own "wholesaler." Even then, a lot of wholesalers are letting stuff go at 80% of ARV or higher due to crazy high demand. In my market we've resorted to new construction for multi family. That's the point this has come to. Hang in man!

Hi @Abdul Azeez, I've helped a lot of investors acquire properties in Memphis and have a handful of lenders that could assist you.  PM me if you'd like some referrals.  

Hi @Amanda Boshard.  I traditionally work in the triplex/fourplex arena here in Utah County.  For the most part, everything is going for about a 5 cap.  There are some new construction opportunities here that do better than that though.  I was in Vernal a few weeks ago on a fishing trip and couldn't help but look at the market.  You can typically get land cheaper there but you're exactly right about demand.  When demand is strong your property will be filled and life will be good.  But in a one dimensional economy when it's bad, it'll be really bad.  I saw this happen to a lot of investors who bought trailers etc up in North Dakota back during the shale boom.  Completely different market though.  It's okay to buy when oil is down...I've helped a lot of clients buy in Houston.  But you can agree that Houston is just a LITTLE different than Vernal LOL.  Much more diverse economy.  

Hi @Roxanne Baisden nice to meet you! I have a great referral for a CPA/Attorney that works primarily with investors. PM me if you'd like an intro. I actually use them personally for my out of state properties and lending that I do. Can point you in the right direction on SFR's and Multi Fam out of CA as well. Good luck to you!

Yeah @Rich Hupper, @John Suralik and @John Casmon have it right.  Competent, investor friendly lender should be able to include the income and so your debt to income ratio actually gets BETTER with the subsequent properties.  If you mention this to your lender and they say they can't do it or don't know what you're talking about, its time to find a new lender.  

Hi everyone, some of whom I already know :)  I'm of the philosophy that it's possible to buy turnkey from a distance and never see the property...but you HAVE to have those appraisal and inspection contingency inspections in your contract with the provider.  And if you think your'e going to feel better by going to the market and meeting the team, absolutely do it.  I find that this brings a lot of clarity to the process.  Most are "all in" after they meet the provider or they can't run fast enough in the other direction.  Markets, rent to value ratios...all those macro things are important.  But none of them matter at all if the team on the ground can't execute the plan.  

Hi @Mo Olatoks, nice to meet you! That list is a good start. I would add in property management fees, but with you living there yourself you may be taking that on (I'm assuming that because you stated FHA financing). You need to add in some kind of a maintenance reserve. How much depends on the age of the property and what kind of condition it's in when you buy it. For example, most of my clients buy brand new construction so we put in very little maintenance at first. But with older units, there can be a lot. You'll also want to inspect the units to verify what condition they're in and get a forecast on what turnover cost you'll have when those units go vacant. Good luck!