All Forum Posts by: Sunil Kurian

I've done business with a few turnkeys in general and Memphis specifically has some good ones. Search the forums and I'm sure that you'll find more than a few options. That said the market is still really hot right now so inventory does not last long regardless of which you choose.

If this is your first rental, then turnkey could be a great way to go. If you choose to do that, you can't really compare the prices for turnkey to what you see on MLS because the acquisition, renovation, and tenant placement are all things that are baked into their price. Especially when you are new, turnkeys can take away the risk of performing those tasks yourself as a newbie. At some point, you may find it hard to scale past a certain point if turnkey is your only option but there can be alot of plus points going in that direction if you're just starting out.

There are lot of great resources out there to choose from. On the recommendation of others, I really leaned in heavy on Prep Agent. Others I knew enrolled completely in his paid course without any complaints. (I mostly accessed just the free resources he's put out on youtube/itunes.) I found his content to be extremely succinct and presented in a way that helps you remember the important points of different real estate concepts.

Wish you luck!

As an earlier poster said, the following is all being said from a place of concern and not over-criticality.

Accepting a $20k disparity in cash flow from the market is a luxury in and of itself...a luxury that your tenants are currently benefitting from...not you. In fact, the biggest winner in these circumstances is your "AirBnB tenant" who is probably growing their profit margin because their biggest expense is locked and under market. (What good fortune!)

I definitely understand the point about not wanting to lose good tenants but let's frame it differently: how many of us property owners would pay a tenant to simply stay put and not move? Under normal circumstances, probably not many. However, in this case that's exactly what you're doing to the tune of a cumulative total $20k you are just gifting to them. Moreover, when you're so far under market...you leave yourself vulnerable to the impact of an insurance increase or a tax reassessment by Hillsborough County. At that point you will be scrambling to find a way to make the numbers work. This is no way to live as a property owner! :)

Lastly, I realize that the Tampa markets have seen crazy appreciation but nothing is forever. The longer you are under market, the less attractive your property will be in the open market to other investors. Pricing investment properties can be a tricky thing but if you are 35% under market rent you are more than likely only going to be approached with "bargain"offers should you choose to sell. So by not raising the rent, not only have you lost recurring cash flow, you also risk losing money when you sell what could be seen as a less profitable asset.

I agree with Nathan G. That type of rent increase is just realistically not something that will go over clean with existing tenants without lingering issues. Every tenant is different but in most cases it's just best to run out the existing leases, clean it up, and re-market. If you are worried about the quality of tenant, there are plenty of services and resources available that can help or even take over that process for you. You're already losing $20k (of real money) so having to do some turnover repairs shouldn't dissuade you so much that you need to continue to prolong the shortfall. Wish you luck!

@Denzel Faulken If the concern is that you may need to pickup and transport things for 1 rental house...not sure how a 30-35k vehicle is the best solution.

First off, unless you plan on doing a big project with many deliveries and/or hauling...buying any truck may not be necessary. (Just pay the delivery charges and pocket the difference)

I'd you still really feel like you need the truck...you can probably get a used truck that will get the job done for far cheaper than what you are suggesting. But something tells me thus question is less about utility of use....and more about wanting to justify a splurge purchase.

Best of luck figuring it out!

Everyone here has given some great suggestions. If I were you, I'd make a list of these markets...and then start trying to network in those areas. Different markets may yield similar profits...where you yourself will be most successful is one in which you have developed a strong "boots on the ground" presence to help you succeed. (Realtor, property manager, contractors, etc.)

This could be a great idea but the way it is executed can be the difference between drawing penalties and gaining profit. There is a big difference between withdrawing the money vs. a self directed ira. I'd definitely solicit an expert who can lay out the rules specifically because he needs to approach it carefully.

@Austin Charlton

First, congrats. You are in a fabulous financial position that many of us on here would have killed for as a starting point. You worked hard, now you get to jump in the game with a strong starting position.

Don't think of it as having only $100k to spend. Think of it as having $400-$500k of buying power (with your credit score using conventional financing). In the right market that could be anywhere between 2 or 3 decent properties (once you factor in closing costs).

I'd strongly reccomend surfing these boards first for a while and learning about the type of deals that others are doing. Opportunities in real estate vary by market and economic cycles...you need to find what appeals to you weighing your level of risk tolerance vs desired yield. Don't put any pressure on yourself to invent anything new and spend your time building a network of people who can hekp you fogure it out. The best part of real estate is that there is plenty of room to learn from and imitate the success path of others.

Wish you much success.

This is a great question and there are a lot of terrific anecdotes already provided. To me, this isn't just a cash flow issue...it's also a matter of marital happiness. If you're already in this forum, then the challenge is in how you obtain one without the other suffering.

Everyone has had a different journey with money prior to marriage and a wise spouse is one who is sensitive to that. Some spouses came from a lot, some came from none, some learned that "saving is everything" while others learned that you spend what you have while you have it because "you only live once".

Too many couples don't talk about money at all, let alone real estate investing. Do you know how your spouse would define "financial security"? What amount would it be? What lifestyle would it look like? I'm of the opinion that there is no way around having those conversations as often as possible before and while you are investing. The understanding and trust built during the process is key to moving forward with a plan that you can both be on board with.

The good news is that very few spouses will ever say that they flat out just don't want passive income, the challenge is only in how you arrive at that destination within their risk tolerance. Money is not the only formal of capital in the equation, trust is just as (if not more) important. Sometimes there is no getting around having to work hard to earn it...

Curious: If zillow's home buying practices were based on algorithms similar to the algorithms also used to power their "Zestimate" numbers...what does that say about the accuracy of those estimates on a home's market value? Many home buyers/sellers seem to rely and even quote those numbers when transacting for a home.. Thoughts?

@Nathan Yarnell It's not often but there might be specific situations where it might make sense to buy a property with "neutral" cash flow...but that would be really personalized advice that needs to come from someone who knows the tax code as well as your entire financial picture inclusive of your taxes and any retirement plans.

While real estate agents do provide a valued service, that is simply not what they are trained to do...their function is to help you transact a home purchase. Any advice given by them is not coming from their actual training, it's generally coming from their experience or thoughts; which means it's just one person's opinion. Not sure about you, but I've heard a lot of different unsolicited opinions in my lifetime and many of them are about as valuable as what I've paid for them.... Don't just assume that just because they help buy/sell houses, that they can be relied upon to know anything about personal finance or investment.