All Forum Posts by: Tyler Smith

@Daniel Haberkost The first property I purchased was in Jackson, MS, not quite sure yet how I feel about the management company at this point, I'll know in the near future. I've definitely been interested in the Little Rock and Memphis markets. I've been in contact with a provider down there who has really good reviews and a solid track record. Due diligence is key for sure and nobody is successful without making mistakes. Thanks for your input!

@Tom Ott I know its easier said than done but have no problem with paying a property manager who does a quality job, so yes one of my biggest concerns are constant turnovers due to the cost. I know in my own life I've been a renter in multifamily units for the last 6 years or so and I've never stayed past my initial lease. I can only assume a good portion of tenants are similar to me

@Account Closed I understand that out of state can be challenging, I'm not too familiar with the LA market but I assume its very similar to Seattle. 2 years ago I drove by a house that had burnt down in Ballard (a desirable neighborhood in north Seattle) and it was selling for $400k. I'm sure some people who are way better at the real estate game can make these higher markets work, I just don't physically have the experience or capital to take on the houses in Seattle. I'm saying never but right now I'm thinking I should stay away from the land of $600k houses

@Daniel Haberkost My main goal is cashflow. Basically I would like to phase out my job over the next decade or so. Being a blue collar worker and saving up for each property with my w-2 job makes some of the larger $500k+ out of reach at least in the short term while the $100-$120k SFR is very doable. I understand there are strategies to have infinite returns and all, while I'm starting out getting the hang of it I'm not sure if leveraging up and/or taking on big projects from a few states away is the best choice. Just my own thoughts, thanks for the response!

As we all know it’s possible to obtain the 10 30yr fixed rate mortgages, which in my personal opinion is almost non negotiable and is my main focus.

So with that said, my plan is to get 10 quality B+ SFR properties in generally low cost of living areas. Recently I've been digging into the idea of potentially doing 10 small Multifamily (2-4) in order to maximize the number of doors after I reach 10 properties. Owning rentals seems to be an economy of scale and more doors means more tenants which means higher probability of stability in my overall portfolio (that's my though process anyway)

However, tenant quality and turnovers can be a cash flow killer and that’s where I’m stuck. This is more of a quality over quantity debate, 10 families in a nice area will most likely  treat the property better and have a tendency of staying longer.

To put everything into context I’m doing the out of state turnkey thing. I am a median wage earner in Seattle and my main goal is cash flow and I can’t complain about tax benefits either. Currently own 1 OOS single family looking at my 2nd

Thank you everybody for responding, I really appreciate your opinions! Good luck and continued success!

I appreciate everybody’s opinion thanks for responding.

@Terrell Garren @Joe Splitrock so 3-5% of property values for maintenance in a checking account as well a CapEx account with $10-$15K should be sufficient for starting out

@Allan C. That is a good point. I have a monthly P/L spreadsheet that I keep for my tax purposes that should tell me everything I need to know. Thanks for responding!

@Brian G. That is pretty much my thinking thinking right now. Id rather error on the conservative side to where a major issue or 2 doesn’t have me scrambling.

@Mark S. I’ve heard the 3-5% reserve rule also it just seems a little minimal for me personally. My other idea was to basically do exactly what you’re doing with your system. I may give that a try. Thank!