All Forum Posts by: Jin Park

 Hi Shiloh. Did you had to create separate EINs for all of your child llcs or did your bank allow you to setup different account with one parent llc EIN?

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $138,500
Cash invested: $32,685

Type: Single Family Residence
Neighborhood Class: B
Rent: $1195
Square Footage: 1800
Bedrooms: 3
Bathroom: 1.0
Year Built: 1920

How did you find this deal and how did you negotiate it?

Rent to Retirement Turnkey Provider

How did you finance this deal?

HELOC

Lessons learned? Challenges?

Working with big insurance companies is difficult especially if your property was built prior to 1940. Big insurance companies like Allstate will require you to submit proof of CapEx repairs before they can increase your Dwelling Coverage that can cover your loan amount, which is typically required by your lender. Trying to close during the end of the year is also difficult due to holidays. Thanksgiving, Christmas, and New Years all happening during my closing slowed down the entire process.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Eric Winkler, Executive Investment Strategist for Rent to Retirement

Roberta Anderson, Senior Process for SecurityNational Mortgage Lender

It took me about a year and a half since I started educating myself on Real Estate to finally purchasing my first property in November, 2021. What kept me from buying my first property earlier was that for me… the more I educated myself, the more I realized that there are a lot of factors that you need to consider IF you want to execute a-z process yourself (looking for properties yourself, hiring an agent, finding contractors, rehabbing, etc.). To me, this was way too overwhelming, so I continued to just educate myself without taking any actions.

Then, I realized I seriously need to just get my foot in the game and learn from the real experience of purchasing the property… but then again… at the same time, I was still overwhelmed and afraid of doing all of the work myself for the first time. So, I decided to change my strategy and go with Turnkey Provider for purchasing my first investment property. 

I did a lot of research and interviews and decided to go with Rent to Retirement. They have an amazing reputation and people on the team that truly walk you through the entire process. The ROI that Turnkey properties will give you will obviously be lower than what you would get if you've done the entire process yourself, but RTR actually do have inventory that has pretty high ROI.

Long story short, if you are hesitant to purchase your first investment property by doing a-z your self for the first time, give RTR or other reputable Turnkey providers a chance. Even though a lot of things are already prepped and ready to go for Turnkey properties, I still learned a lot about how the inspection is processed, purchase agreement is formed, talking to multiple lenders, talking to multiple insurance providers, interviewing Property Managers, etc.

If you do decide to go with a turnkey provider, @Account Closed is the man to go to. He’s been guiding from the beginning to the end with my first property and we are currently closing on my second property as well.

@John McDermon thanks for the quick response John! 

@John McDermon Hi John. Were you able to find a good turnkey provider that has a lot of short term rentals in their inventory? I also have 2 SFH, but my CPA recommended me to look into short term rentals for greater tax advantage if I am looking to continue my W-2 job.

@Scotty Tullis I first had the same concern as you did since a lot of turnkey providers quiet did not have the same good reputation as RTR did during my research. However, when I did find RTR and started working with them, I've realized RTR folks really do care about you and actually provide inventories that will give you a good ROI. I've actually even got the opportunity to talk to CEO Zach Lemaster. I've never thought I would get the opportunity to talk directly with Zach, but he called me directly to help me with my weird situation that I ran into regarding the Property Manager that I mentioned in my post. I've only seen Zach in Youtube videos and podcast, so it kind of felt like talking to a celebrity lol.

I would encourage you to filter down your potential turnkey provider list to maybe 3-4, then take the time to actually have a conversation with the representative. I've talked to several turnkey providers but they all did not grab my attention like Eric did when I first had my phone call with him. 

In terms of the property I purchased, it was closed literally a week ago, so I have not received any rentals yet. However, the property is occupied already, so I am expecting a cash flow of around $400 in an ideal situation.

RTR does provide estimate of the basic financial breakdown and expected return for their properties. My interest rate came much lower than what they estimated, which made my ROI at the end higher than what they initially provided.

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $158,000
Cash invested: $34,000

Type: Single Family Residence
Neighborhood Class: B
Rent: $1250
Square Footage: 1100
Bedrooms: 3
Bathroom: 1.0
Year Built: 1920

How did you find this deal and how did you negotiate it?

Rent to Retirement Turnkey Provider

How did you finance this deal?

HELOC

Lessons learned? Challenges?

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748173&page=1#p5748173

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Eric Winkler, Executive Investment Strategist for Rent to Retirement

@Trevor Fleck I went with Rent to Retirement Turnkey Provider. They have incredible reputation in the BP forums and Eric Winkler, who's the Executive Investment Strategist, is awesome to work with. After doing some research, I chose Indiana, because of the following reasons:

• Good Rent to Value Ratio
• High Rental Demand
• Landlord Friendly
• Low Property Expense/Tax

Hi BP Community!

I just wanted to share some lessons learned during my recent purchase of my first rental property through a turnkey provider. Overall, my experience has been smooth with only few minor hiccups along the way that can definitely be avoided in the future. I structured this post by tackling the items based on who you are working with.

Working with a Turnkey Provider

1. -Make sure you do a thorough research when picking your turnkey provider. In BP forum, search for "[turnkey provider name] review". Some turnkey providers today makes investors bid for their inventory, which I wasn't aware. I tried to stay away from these type of providers since your initial number that you analyzed will change based on the final purchase amount you bid for.
   
2. -Once you pick your turnkey provider, make sure you consider the following item list:
3. 1. Clarify if Property Manager is already selected. Many turnkey providers work with specific Property Managers, and they may have already selected an agent for you. I was not aware of this so I interviewed bunch of PMs and signed a contract before the closing, which I had to terminate since my provider already had a PM selected for me.
4. 2. Ask key property information such as the following. These information will be handy when shopping for your insurance.
5. --Roof Type
6. --Foundation Type
7. --Furnace exist
8. --External/Detached building(s) exist
9. --Porch exist
10. --Garage capacity
11. --What appliances are included
12. ***If your property is built prior to 1940, then some of the insurance providers will require proof of repair of the Roof, Electrical Wiring, and Plumbing. Some insurance providers will accept Appraisal document as an alternative proof.

Working with a Lender

• -Ask for the anticipated closing date so that you can use it as Coverage Start Date for insurance. I thought I was being smart and made the insurance coverage start date to 3 months from when I started this entire process (I started this process around mid August so I had my insurance coverage start in November 1st). Lender was able to process everything quicker and requested me to update the insurance coverage, however, even with gazillion phone calls with Allstate, they had so much issue updating my coverage start date. Long story short, Allstate could not update my coverage start date before November 1st, so my closing got pushed back by 2 weeks.
• -Ask your lender the following questions regarding your insurance coverage:
• 1. Should Insurance be based on actual cost or replacement cost?
• 2. What should be the minimum dwelling coverage?
• 3. What is the Loan number that needs to be specified on the coverage?
• 4. What is the exact lender P.O.BOX and exact contact info that needs to be specified on the coverage?

Working with Insurance Company

• -Ask if there are any discount if you looking to bundle your auto and primary home owner's insurance along with your new rental property.
• -Make sure the Loan Number is included in the policy.
• -Make sure coverage start date is correct.
• -Make sure your Date Of Birth is correct.

Hi BP fam!

I am about to close my first single family rental property in Indianapolis, Indiana (zip code: 46218), and I am looking for any recommendation on good property managers. Any feedback would be greatly appreciated!