All Forum Posts by: Taz Zettergren

will you send me the address on this please? 

@Danilo Perea

You're right to say there's no universal "best" property class, it really does depend on your strategy, goals, and how hands on you want to be. That said, one thing to be careful with is how neighborhoods are graded. Class A, B, C, and D are loosely defined and can vary by market, so what one investor calls a C+ might be seen as a B- by someone else.

Instead of getting caught up in the label, a safer approach, especially for newer investors is to focus on areas close to the median home price for that market. These tend to offer the best balance of stability, demand, and long term performance. They're also more insulated during downturns because they cater to the largest pool of renters.

Properties around the median price are typically in working class to middle income neighborhoods. They attract reliable tenants, hold value better, and don't require you to take on the headaches that often come with deeply discounted homes in rougher areas.

Appreciation and cash flow are both important, but starting with something in a stable, in demand area near the market's median price often sets you up best for long term success, especially if you’re investing out of state or looking for a more passive approach.

@Ihosvany Castaneda

Appreciate you putting the question out there—great to see you doing your due diligence. Section 8 can definitely be part of a solid rental strategy, but it’s not without its challenges, especially when investing out of state.

Be careful with the common assumption that "guaranteed rent" equals "guaranteed success." While the payments are reliable, you still need to screen thoroughly, stay on top of maintenance, and work with a team that knows how to navigate the Section 8 process. And most importantly, you want to avoid chasing high returns in rough neighborhoods just because the numbers look good on paper. That’s often where investors run into the most headaches—higher turnover, deferred maintenance, and inconsistent tenant quality.

There are great operators out there offering fully renovated homes in solid B-class neighborhoods where demand is strong and management is tight. That’s where the long-term value is built. If you go the Section 8 route, make sure you’re working with people who know how to play the game the right way and in the right areas.

@Victor N.

Great to see you're diving into building your rental portfolio! You're right, at current rates, making single family homes cash flow can be a challenge. Have you considered expanding your search to markets/states outside of KC? As you move a little farther south and east, there are markets where both yields and purchase prices are more favorable while still being in solid rental areas.

Also, some companies are offering rate buy-downs for investors, bringing 30-year fixed rates down to around 5.75%. That could make a significant difference in your cash flow projections. Happy to chat more if you want to explore some alternative markets and strategies—let me know what you're thinking!

@Dayana García

I believe it’s too early to sell. Like others have mentioned his is a buy and hold investment, not a buy and sell strategy, and the real value comes from long term ownership. Selling this early wouldn’t maximize the return because the transaction costs, including commissions and other fees, would eat into any gains. The whole point of investing in turnkey real estate is to generate consistent passive income and long term appreciation, and selling too soon undercuts that potential. I’d encourage you to stay the course, let the investment do what it was designed to do, and take advantage of the stability and income it provides over time.

@Abhishek Namani 

It's great that you're looking into rental investing, but based on the numbers you shared, this deal might be a bit tight. With a mortgage payment of $2,500 per month and rent at only $2,000, you'd be operating at a monthly loss before even factoring in maintenance or vacancies. The added HOA fees make the gap even larger.

One thing to consider is whether you’re comfortable covering that shortfall in the short term, banking on appreciation to make the investment worthwhile. If the market is growing rapidly, this could still be a viable move, but you’ll need to be financially prepared to supplement the property each month. Another option is looking at markets where rental income better covers expenses, as some areas offer a stronger rent-to-price ratio, making it easier to break even or generate income sooner.

You might also want to consider older, freshly renovated homes that are closer to the median home price. These properties tend to have stronger demand, and the rents are often more favorable. Unlike new construction, where building costs keep prices high, a fully updated existing home can often provide better value and return on investment.

It would be helpful to run a full analysis, factoring in property taxes, insurance, maintenance, and potential vacancies, to see if this deal truly aligns with your long-term goals. If you want help evaluating your options, let me know!

@Hailey Peterson 

Totally understand the analysis paralysis, your first investment is a big step, and both options have their pros and cons.

Since you’re in Nashville, investing locally in Chattanooga or Nashville could be a great way to get started. Being nearby makes it much easier to oversee the property, build relationships with your property manager or contractors, and gain hands-on experience before expanding elsewhere. It also allows you to enter the market sooner without needing as much capital upfront.

On the other hand, if your long-term goal is to build a portfolio in Washington and you’re comfortable with lower cash flow (or even breaking even) in exchange for appreciation, then making that initial investment there could align better with your future plans. The key is making sure you can comfortably hold the property without relying on immediate returns.

A good middle ground might be to start with a rental in Tennessee to get experience under your belt, then use the equity and cash flow to help fund a Washington purchase down the road. Real estate is a long game, and getting started sooner rather than waiting for the perfect deal is often the best move.

Whichever route you take, you’ll learn a ton along the way. Best of luck, and feel free to reach out if you ever want to talk through things further!

@Anthony Stahurski 

Great to see you taking the first steps into real estate investing! If you can, I'd highly recommend trying to find a multi-unit property with your VA loan—duplex, triplex, or even a fourplex. That way, you can live in one unit while renting out the others to help cover your mortgage. If multi-units are tough to find, another great option is buying a single-family home and renting out the extra rooms to friends or other tenants. That's actually what I did before I got married, and it worked out really well.

Either way, house hacking is one of the best ways to get started in real estate while keeping your living expenses low. Make sure to run conservative numbers so you're prepared for things like maintenance, vacancies, and unexpected costs. The VA loan is a powerful tool, so take full advantage of it!

@Steven Le 

You’re absolutely right to dig into both the opportunities and risks in Memphis. One key point that often gets overlooked is that while the city itself has seen some population decline, the greater Memphis metro area is actually growing. That’s why it is crucial to focus on the suburbs, where demand remains strong and long-term stability is more predictable.

The best strategy is to stay close to the median home price in these suburban areas. That’s where you’ll find the widest pool of both renters and future buyers, ensuring consistent demand. Memphis is a cash flow-friendly market, but buying in the right locations means you’re not just chasing returns today, you’re setting yourself up for strong performance over the next decade and beyond.

Would love to hear more about your investment goals and help point you in the right direction if Memphis ends up being the right fit for you. Let me know what you're looking for in a market!

@Sas Sel 

I would recommend looking into Memphis, Little Rock, Oklahoma City, and Tulsa because these cities offer a great balance of affordability, strong rental demand, and landlord-friendly laws. They are all markets where we actively operate and see high investor interest.

Finding properties that meet the one percent rule has become more difficult, and those that do are often in areas with a very high percentage of rentals. These neighborhoods typically experience more frequent turnover and increased maintenance costs. Investors who prioritize long-term stability tend to focus on homes in the median price range. Although these properties usually have a rent-to-price ratio closer to zero point seven percent, they provide more consistency in tenant quality, property appreciation, and rent growth over time.

Florida and Texas both have higher insurance and property tax costs, which can reduce overall returns. In contrast, these other markets offer more manageable expenses. A well-renovated home with strong management can create a steady and passive income stream, even if the initial return is slightly lower than in riskier areas. If you would like to compare these markets to what you have done in Florida, I would be happy to go over the details with you.