Looking to buy with a turnkey property potently with RentToRetirement anyone with experience & advice? what should be a reason to choose 1 market over the other how to identify a market to buy?
Looking to buy with a turnkey property potently with RentToRetirement anyone with experience & advice? what should be a reason to choose 1 market over the other how to identify a market to buy?
Thanks
A lot has been written on BP about R2R and everything looks solid.
I'm a big believer in sticking with 1 market until you build a large enough portfolio and diversification is justified.
Like with many investments and not just turnkey, it's important to build a large portfolio.
The time and associated risk isn't worth buying 1 or 2 properties if you expect a significant impact on your bottom line monthly cashflow.
Most turnkey properties are sold at fair market value or slightly above.
Nothing wrong with this as long as property management is solid and does their job with integrity.
Buying turnkey you won't have built in equity so no growth can be manufactured and you will have to wait for the market to grow to see an equity gain.
Thus, IMO it's important to have mindset where you endeavor to build a large enough portfolio so the monthly cashflow makes sense and the portfolio becomes safer.
Lender · Denver, CO · Member since 2022 · 467 posts · 230 votes
2y
Hey Pinny,
When considering purchasing a turnkey property here are a few key points to keep in mind:
Experience and Reviews: Research reviews and testimonials from other investors who have worked with RentToRetirement. Look for feedback on their service quality, property management, and overall investment performance. Join real estate investment forums or groups where you can ask for firsthand experiences and advice. However, I have seen some weird listings on this site and it also does not have the best reviews. As an investor in real estate myself, I much prefer working with an individual rather than a site like this. However, that is just my preference.
Market Selection Criteria: To choose the right market, consider factors such as:
Economic Growth: Look for markets with strong job growth, a diverse economy, and increasing population.
Rental Demand: Identify areas with high demand for rentals, which can be indicated by low vacancy rates and high rent-to-price ratios.
Affordability: Ensure the market offers properties within your budget that also meet your cash flow and appreciation goals.
Property Management Quality: Verify that there are reliable property management companies in the area to handle day-to-day operations, especially if you are investing from a distance.
Comparative Market Analysis: Perform a comparative market analysis to compare potential markets. Assess historical data on property appreciation, rental income trends, and market stability. Tools like Zillow, Realtor.com, and local real estate websites can provide valuable insights.
Choosing a market involves balancing risk and potential return. Thorough research and a clear understanding of your investment goals will help you make a more informed decision. I am an experienced loan officer and I have multiple investment properties myself. Glad you are looking into real estate investing as, in my opinion, it is one of the best ways to build generational wealth. Please feel free to DM me if you have any other questions!
Thank you for the interest in Rent To Retirement. We have many reviews and threads on BP for over a decade now that I've linked below. This will be helpful in your research.
Rent To Retirement actually has more 5 star reviews than any other company on Bigger Pockets, so I recommend doing your own research from people that have actually invested with us and understand how our process works. Here is the link to our BP page showing over 250 - 5 star reviews:
To answer your question, there are many reasons to consider one market over the other. Among the top reasons, I would recommend understanding what different price points look like in different areas along with taxes, legislation, population/economic growth, affordability & rental demand. Some markets have lower price points that allow for more cash flow, while other markets likely have better appreciation, but upfront have higher price points & possibly lower cash flow. All depends what matches your goals the best to get started.
I'm happy to answer any additional questions you have at any point in time. Just let me know.
Here are some other threads to read about Rent To Retirement, Turnkey investing, different markets, etc. Hope this helps.
Looking to buy with a turnkey property potently with RentToRetirement anyone with experience & advice? what should be a reason to choose 1 market over the other how to identify a market to buy?
Thanks
A lot has been written on BP about R2R and everything looks solid.
I'm a big believer in sticking with 1 market until you build a large enough portfolio and diversification is justified.
Like with many investments and not just turnkey, it's important to build a large portfolio.
The time and associated risk isn't worth buying 1 or 2 properties if you expect a significant impact on your bottom line monthly cashflow.
Most turnkey properties are sold at fair market value or slightly above.
Nothing wrong with this as long as property management is solid and does their job with integrity.
Buying turnkey you won't have built in equity so no growth can be manufactured and you will have to wait for the market to grow to see an equity gain.
Thus, IMO it's important to have mindset where you endeavor to build a large enough portfolio so the monthly cashflow makes sense and the portfolio becomes safer.
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
2y
In the last three months we have brought on about 5 owners for property management who have had very rough experiences with them through the building process. I would do some thorough research. After what I have heard and seen I would not use them.
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