All Forum Posts by: Trevor Fleck

@Danny Mittler as a new investor with limited capital, you might be best served working with a turnkey company that has an established network of vendors in a market where $30k can work as a downpayment on a house. I'm afraid you'll struggle to find that in most areas of Florida these days...

I can provide some recommendations on turnkey companies I've considered if you'd like. 

@Travis Hagan Is that $40-$50k/year I'm assuming? Do you have a W2 job or own your own business for at least two years? I ask because if the answer is "yes" the ability to use financing (leverage) could make your $700k go a long, long ways. For example, you can leverage up to 10 homes using Fannie/Freddie financing which is still one of the best loan products on the market. Another 10 if you have a significant other and make sure to keep 10 in each of your individual names. There are some good turnkey companies in the Memphis area. Some of the bigger ones are Memphis Invest/REI Nation, Mid South Home Buyers and Rent to Retirement. I personally use Rent to Retirement and have been very pleased.

You might also consider dipping your toe in 2-3 markets with a couple different turnkey providers. You'll learn a lot from each of them, tap into their network of contacts that you can use later either to invest further with them or to go out on your own, and you'll be diversified both across regions and products. This way you do a proof of concept/pilot before doubling down on any particular market with any particular turnkey company. I've personally had good success in Huntsville, Little Rock, and Cape Coral. Happy to chat more about my experiences if it would be helpful. 

@Mickael Castillo have you considered the areas around Orlando like Ocala, FL? @Patrick Bavaro has had some good luck there. 

Based on my investment experience in Cape Coral with Rent to Retirement, I often have potential investors ask about how to select an appropriate lot when they all more or less look the same. Below is my list of things I've learned to consider. What other tips/rules of thumb do you have? 

Freshwater Canal Lot Considerations:

• At least one block away from a major highway to reduce road noise
• A West, South, or East facing lot all things being equal (i.e., the direction the back of the lot where your tenant would relax faces)
• The wider the canal, the better
• Look for houses in the surrounding areas with pools - this is a good indication of a higher value home
• East of El Dorado (west of El Dorado is mainly designated as FEMA flood zone areas)
• Make sure no protected species on your lot or the adjacent lot (burrowing owls and gopher tortoises in specific)
• Consult the Cape Coral Utility Expansion Map. You want to be in one of the later expansion phases to avoid $15-$20k in tax assessments paid over 20 years when the City connects the lot to City water/sewer
• Flat lots without a lot of trees (moving earth or removing trees can be quite costly)

@William Christie thanks for your post. I was in your shoes and spent a lot of time vetting turnkey providers on BP, speaking with several, visiting a few, and ultimately settling on Rent to Retirement. I have purchased 7 properties through them including 6 in Cape Coral. Check out their reviews. Because they are in so many markets with different products, they are somewhat market/product agnostic and instead truly focus on your goals and direct you to an appropriate investment. That said, their real "secret sauce" is the investment advice they give. Many people pay thousands of dollars for the type of advice they give as part of their product offering. Happy to share my experiences if it would be helpful. 

@Robert Yapp, I know I'm not answering your question because I've not worked with either (although I've spoken with them both), but have you also considered Rent to Retirement? I have a good buddy doing a new construction build there and I personally have had a lot of success with them in other markets. Would be happy to share my experiences with them and why I chose them over some of the other turnkey companies including the ones you mention above if it would be of value. 

Hi @Joe Maris I've purchased from two turnkey companies, visited several, and vetted dozens over the years. I'd be happy to share some of the things I've learned

@Rong Tan I've not personally built the Verona model but I know several people who have. The appraisals are coming back nearly identical. It's a very similar build to the Valencia as far as specs, sqft, etc. 

@Max Sack I'm on deal #7 overall with RTR. My first was in Little Rock, AR back in 2019. I sold the property two years later and used the proceeds from a healthy appreciation to buy lots in a hotter market - Cape Coral. My maintenance costs while holding the Little Rock property were 2.7% and my vacancy was 0% (had a tenant in place before my loan closed). As @Zach Lemaster mentions above, the key is to manage your rental portfolio and exchange those where the major systems are starting to age before you get hit with the bill and then have to hold the property for several more years to recoup the cost. So many investors on Bigger Pockets want to "buy and hold for 30 years." Rental portfolios need to be managed just like stock portfolios. That's one of the many things I learned from Zach and his team and it's helped me tremendously on my real estate wealth-building journey. 

@Kunal Mishra @Joe Maris just returned from Cape Coral last week. I have 4 builds myself going on and another 3 I'm partnering on with my dad so 7 total with RTR. A few updates on numbers:

• - Rents are now closer to $2,400-$2,450. My property manager will be listing my first one for $2,500 once it's done in March (just waiting on State Health Inspector to approve the septic inspection). 
• - Land prices for a "clean" lot (no protected species, no flood zone, away from busy highway, etc.) are now a minimum of $40k and more like $45-$50k for a freshwater canal lot. Most that you find on Zillow under $40k have some sort of issues that would come up on the MLS but not on Zillow
• - Build prices are now $250k
• - Lots are appraising for anywhere from $350-$410k (I'm pleased to report two of mine were ones that came in at $410k)
• - Lots listed are now in a full-price, multiple offer situation
• - The quality of the custom builders RTR works with far exceeds that of the "expedited" spec builds you'll see from the national builders in the area. 

Happy to chat about what I've learned if anyone has questions.