All Forum Posts by: Seth Young

Very hot market, that is why you wont see cashflow. Southern/midwest states will have cash flow. @Lynn Anthony

How much free time do you have to invest? If you are a busy person, there are passive ways to get into the world of real estate. I would suggest taking a look at the turnkey real estate model. You would actually own the asset, so you receive the benefits of appreciation, residents paying down your mortgage to build equity and tax benefits. I would work with a team that has years of experience to minimize the risk of your investment. I'd be happy to connect if you have questions. @Joseph Z.

You are on the right track with looking into turnkey if you want to be passive. Other benefits besides cash flow occur when you own a long tern rental such as appreciation, residents helping you gain equity and tax breaks. Not sure where the nonexistent cash flow from turnkey rental comes from, I know for certain there are turnkey properties that cash flow. Which markets have you been looking at? @Lynn Anthony

Morning @Scott Davis. Asking the right questions will absolutely save you in the long run. I actually work for a turnkey provider thats been around for almost 2 decades. Here some of the questions our owners recommend you asking: 

Do you own in the exact neighborhoods you are managing? Sometimes companies or owners do not personally own where they are selling properties. Heck, sometimes they don't even own the properties themselves. Both can be red flags.

How many investors do you work with?

Do you own all aspects of the operation? (or do they hire third party companies). In other words, are you the company I am going to talk to if there are any issues!

Do you offer rental or maintenance guarantees? If they answer yes, ask them why. Then ask them if they will put the guarantee on year three. Guarantees are often used to distract investors from the reality of what they are buying. Any company that is truly offering a turnkey property and wants to guarantee a period of income or occupancy should put that guarantee somewhere down the line to show they do quality work. It is a given that every property you are buying should not have occupancy or maintenance issues in the first year.

Do you defer maintenance? #1 killer of profit on passive investments...deferred maintenance that stacks up and crushes profitability.

How many properties do you manage?

Do you sell properties and if so, do you own the properties you sell?

How long have you been in the business?

What is your average vacancy rate?

What percentage of expiring leases will renew their lease each month?

What percentage of signed leases fulfill their full term?

What is the average number of days a property is vacant between residents, move-out to move-in?

What percentage of billed rent do you collect each month?

What is the cost of an average repair bill after move-out?

Do you mark up maintenance costs?

What are your management fees?

What percentage of collected rent goes to yearly maintenance on average?

What is your average number-of-months occupancy per property?

What is your average occupancy rate?

What programs do you have in place to keep residents happy?

What customer service programs do you have in place for owners?

Will you call me every month with an update on my portfolio?

How many team members are dedicated solely to providing service to your clients?

If you are an investor, What has been your biggest mistake as an investor? How do you protect your clients from making the same mistakes?

If you have any other questions, feel free to reach out.

I'd say it depends on the type of deal you are getting into. Will the property need to be renovated or are you looking to buy a ready-to-rent property? @Chad George

I would suggest getting into some landlord friendly states. Outside of NY, there are markets that offer lower price points and room for those properties to appreciate! And like you said, more job growth and population increase! Are you looking to be more active or passive in the investment? @Anthony Kono

If I were to work with a turnkey company, I would look at a couple aspect. I would want them to have the most experience in the industry, offer multiple markets in landlord friendly states, have a trust worthy and reliable reputation from its current investors. When investing out of state, I feel like the team you work with is equally important as the market.@Brigitte Bugayong

What would you be your desired cashflow for a turnkey property? @Lynn Anthony

I think that is a great plan! I work with investors that have done that very thing, cash-out refi and purchased an investment property with it. You're exactly right, nobody can change interest rates right now. It about time in the market over timing the market. If you are not looking to form a team yourself, I would suggest checking out turnkey companies. They will have fully renovated properties that are set up for the longterm buy and hold. Feel free to reach out if I you have any questions. 

@David H.

Ohio and Indiana are undeniably great markets for investing in properties. I would also point in the direction of midwest/southern states. These states are landlord friendly, have median price points, room for appreciation along with rental increases. If you are looking to be more passive, I would suggest starting out with single family homes. Feel free to reach out if you have any questions. Happy to help. @Adam Berlinberg