All Forum Posts by: Troy Baack

Quote from @Kyle Gardner:

Not meant to critique but we flip and sell a lot and here are some things that would probably help:

1. The listing has 9 pictures. You need a lot more pictures that showcase the great things about your house. No magic number but a minimum of 20 that showcase that great room, nice kitchen and yard.

2. The curb appeal. The first pic clearly shows weeds at the sidewalk. And the grey exterior doesn't pop. Grey and white is out, or should be used sparingly. 

3. The interior is also grey and white. You can't change much of it now, but look up the best sale in the area, and copy what they did. Someone else already provided proof of concept, just copy them. 

4. The pool is clearly dirty in the pics. Also the pics that highlight the powerlines... Not ideal

these might seem nitpicky, but I sell a lot of houses and buyers are nitpicky. 

5. Price is the cure-all. But ideally you'll get more if you remedy the above 4. I also wouldn't use words like transformation in the listing of my flips. You're alluding to the house once being in poor condition. Use words that excite people like, upgrade, remodel etc.

6. Staging never hurts

I agree. I was originally supposed to be a money partner only, though it has progressed to the point that I am having to step in to prevent as much loss as possible. I am working to get all of the numbers straight and potentially extend or move to a new lender to push this through. 

I am a partner on a flip in Phoenix, AZ. The hard money is coming due and we are still unable to find a buyer at any price. The property is in a great area and the flip was done very well adding a bedroom and modernizing everything. I am at my wits end with what to do on this to avoid losing everything on the deal. I've accepted that I will take a significant loss on this, and have already learned a ton from it, but I would like to reduce the total loss as much as possible. Any and all help is appreciated. Property is 3021 E Shangri La Rd, Phoenix, AZ 85028.

I'm renovating a property that will include replacing/installing a few appliances. I am looking for recommendations for a stacking washer/dryer and gas range, ideally something that will hold up to renters for a longer period of time. Are there any brands you recommend or would stay away from. I'm thinking less electronic components if at all possible. 

Quote from @Josh Bowser:

Hey Troy - with turnkey properties you need to put a high down payment with today's interest rates. You can find a turnkey that works in most markets (with large DP), but I would advise avoiding markets with low to no population growth unless you have a competitive advantage there. 

Turnkey properties can be great as long as your time horizon is well out into the future.

Do you know anyone that does value add deals that is looking for a capital partner? You may be well served if you can find someone who needs money where both of you benefit. Just a thought!

Josh-I do not currently know anyone who does value add deals. I am working on starting to build my network and get in contact with people in different fields of REI but my time is very much at a premium right now as I have 3 small children, my W-2 job, Navy reserves, and volunteering at my church. That was one of the things that very much interested me in the turnkey space, the time input is significantly lower, even though I would be paying a premium for the product. As I am looking at building long term family wealth I have less worries about low performance in the short term. As long as I am able to find locations that have future growth potential I am perfectly okay with playing the long game.

Quote from @Corby Goade:

You said that you are having trouble finding cash flowing properties and also that you are okay with break even. Those are two different things. 

I own a turnkey operation, so you can take what I say with a grain of salt, but...

If you are in this for the long haul, I would not worry much about day one cash flow. If you are buying in a desirable market that is growing and someone else is paying the bills for now, you'll be happy you did that in 7-10 years. 

If you focus on cash flow, you'll get paid right away, but it's less likely that your cashflow or equity will grow in any meaningful way, and it's really hard to scale when all you are doing is making your DTI lower by fractions of a point with every purchase. That appreciation and equity will be important in the long haul and much more valuable that any cash flow.

Plus, over time, the more desirable markets will cash flow better anyhow. 

Regardless of where you land, taking action will trump waiting for a "good deal" every time. 

Best of luck!

 I may have been unclear in my first post but I am definitely in this for the long haul. I understand that it is nearly impossible to find cash flow and appreciation together right now in the turnkey market and I am fine if I am able to get either or. That was what I intended when I talked about break even. If I can get a place in a desirable location that breaks even for a while, great, I'll get a return on my appreciation. If I can find a place that will cash flow consistently but doesn't have the best appreciation opportunity, great, I'll sink a chunk of profits into my principal or bank it for the next property. My big concern is getting into analysis paralysis instead of pulling the trigger when the target is in front of me so I am right there with you. I would rather get my hands on a few ok/good deals now, than wait forever until that unicorn deal comes around. I feel like building up will help to create the opportunities in the future.

Quote from @Travis Biziorek:

The best of both worlds is finding a team that offers a turnkey-like experience without selling you a turnkey product.

I know it exists because it's exactly what I do.

That way you have a team that manages the cosmetic rehab for you and you keep the equity created along the way.

As a brand new investor that is a little outside of my wheelhouse right now. Eventually I would love to work with a team like that but at this point I am just trying to get into the game. 

In much of the research I have done I have been struggling to find rental properties that are going to be able to cash flow well in this economy. I am looking at investing for the long term and am okay with getting into a property that only breaks even or only has a small cash flow. At this time I don't have the capacity to try and work on a BRRR or other rehab projects and I am looking at investing in a turnkey property. My main questions are:

- What are your opinions on turnkey properties? 

- Are there any markets you would avoid?

- Do you have any helpful tips you would give to new investors?

Thanks for the responses! Definitely have a couple of more leads to pursue now. It seems like there is no shortage of new things to learn in the industry, though I can imagine like any other industry, if you aren't learning and growing you are falling behind. 

I am new to real estate investing and have a unique situation in that I inherited a significant amount of money which is currently in a personal trust. I am trying to figure out if utilizing the trust as the funding account is advised or if I should be withdrawing the money from the account in order to make the purchase in my own name, or potentially and LLC. I understand that pulling the money out of the trust increases my personal tax liability as it is counted as income and I have about $60k that must be withdrawn regardless. I am hoping to purchase my first property by the end of the year.